Stock a Has a Standard Deviation of 15% Per Year

question 64

Multiple Choice

Stock A has a standard deviation of 15% per year and Stock B has a standard deviation of 21% per year. The correlation between Stock A and Stock B is .30. You have a portfolio of these two stocks wherein Stock B has a portfolio weight of 60%. What is your portfolio standard deviation?

• A)14.87%
• B)15.50%
• C)16.91%
• D)17.45%
• E)18.03%

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