Multiple Choice
Stock X has a standard deviation of 21% per year and Stock Y has a standard deviation of 6% per year. The correlation between Stock A and Stock B is .38. You have a portfolio of these two stocks wherein Stock X has a portfolio weight of 42%. What is your portfolio standard deviation?
A) 8.89%
B) 9.85%
C) 10.64%
D) 11.84%
E) 12.92%
Correct Answer:
Verified
Correct Answer:
Verified
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