Question
The table below shows the returns of two stocks, A and B, over a period of 6 months. If you invest 80% of your capital
The table below shows the returns of two stocks, A and B, over a period of 6 months. If you invest 80% of your capital in Stock A, and the rest in Stock B, what would be the standard deviation of the returns of your portfolio, over the same period?
Month | Stock A | Stock B |
Jan | 1.0% | 1.7% |
Feb | 1.2% | -0.8% |
Mar | 0.5% | -0.6% |
Apr | 0.2% | 2.2% |
May | 1.1% | -0.8% |
June | -0.2% | 1.6% |
Enter your answer as a percentage, rounded to 2 decimals, and without the percentage (%) sign. For example, if your answer is 0.123456, that's equivalent to 12.35%, so enter 12.35
Please make sure the answer is correct. This is the second time I have had to ask this question because no one seems to know how to do it. The answer is not 0.40 or 0.36.
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