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You are composing a two-stock portfolio consisting of 20 percent Stock A and 80 percent Stock B. Given the following information, find the standard deviation
You are composing a two-stock portfolio consisting of 20 percent Stock A and 80 percent Stock B. Given the following information, find the standard deviation of this portfolio.
Company | Beta | Expected Return | Standard Deviation | Covariance |
---|---|---|---|---|
A | 1.5 | 28% | 50% | COVA,B = 0.06 |
B | 2.2 | 12% | 40% |
Round to the nearset hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.)
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