Question
The standard deviations of Stock (K) and Stock (L) are 10% and 40%, respectively. The correlation between these two stocks is 54%. what would be
The standard deviations of Stock (K) and Stock (L) are 10% and 40%, respectively. The correlation between these two stocks is 54%. what would be the APPROXIMATE standard deviation of a portfolio if we invest 40% for Stock K and 60% for Stock L?
A)18%
B)26%
C)32%
D)48%
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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
17th Edition
0357714482, 9780357714485
