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The standard deviation of stock A is .60, while the standard deviation of stock B is .80. If the correlation coefficient for A and B

The standard deviation of stock A is .60, while the standard deviation of stock B is .80. If the correlation coefficient for A and B is negative, then a portfolio that consists of 50% of stock A and 50% of stock B MUST have a standard deviation _________. Assume no short selling allowed.

a. Less than 0.5

b. Greater than 0.7

c. Greater than 0.5

d. Less than 0.4

e. Not enough information

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