You create a portfolio investing $40\%$ in stock A with standard deviation $10\%,$ and $60\%$ in stock B with standard deviation $20\%.$

The portfolio has a standard deviation of $14\mathrm{.}75\%.$

What is the correlation coefficient of the two securities$?$

Question $17$Answer

a$.$

$0\mathrm{.}8$

b$.$

$0\mathrm{.}3$

c$.$

$0\mathrm{.}6$

d$.$

$0\mathrm{.}5$

e$.$

$1$

f$.$

$0\mathrm{.}7$

g$.$

$0\mathrm{.}4$

h$.$

$0\mathrm{.}9$