A College Student Owns Two Securities: Apple and Coca- Cola

question 102

Multiple Choice

A college student owns two securities: Apple and Coca- Cola.Apple has an expected return of 15 percent with a standard deviation of those returns being 11 percent.Coca-Cola has an expected return of 12 percent, and a standard deviation of 7 percent.The correlation of returns between Apple and Coca-Cola is 0.81.If the portfolio consist of $6,000 in Coca-Cola and $4,000 in Apple, what is the expected standard deviation of portfolio returns?

• A)8.18%
• B)13.20%
• C)8.60%
• D)9.71%

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