Question
The standard deviation of stock A is 10% and the standard deviation of stock B is 20%. Assume that you invest 50% of your portfolio
The standard deviation of stock A is 10% and the standard deviation of stock B is 20%. Assume that you invest 50% of your portfolio in stock A and 50% of your portfolio in stock B. If the correlation between the stocks is 0, then the standard deviation of the portfolio returns equals to:
- 10.37%.
- 3.75%.
- 11.18%.
- 7.85%.
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Financial Accounting The Impact On Decision Makers
Authors: Gary A Porter, Curtis L Norton
7th Edition
1439080526, 9781439080528
