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You have the following information for Stock A and Stock B: Expected rate of return: Stock A: .15 Stock B: .08 Standard deviation: Stock A:
You have the following information for Stock A and Stock B:
Expected rate of return:
Stock A: .15
Stock B: .08
Standard deviation:
Stock A: .60
Stock B: .40
Correlation between the two stocks: .5
If you invest $4,000 and $6,000 in Stock A and Stock B respectively, what is the standard deviation of the portfolio?
Select one:
a. .4157
b. .2932
c. .3794
d. .3210
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