Multiple Choice
What is the standard deviation of a portfolio of two stocks given the following data: Stock A has a standard deviation of 30%. Stock B has a standard deviation of 18%. The portfolio contains 60% of stock A, and the correlation coefficient between the two stocks is -1.
A) 0%
B) 10.8%
C) 18%
D) 24%
Correct Answer:
Verified
Correct Answer:
Verified
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