What Is the Standard Deviation of a Portfolio of Two

question 1

Multiple Choice

What is the standard deviation of a portfolio of two shares given the following data?
Share A has a standard deviation of 18%. Share B has a standard deviation of 14%. The portfolio contains 40% of Share A and the correlation coefficient between the two shares is -.23.

• A)9.7%
• B)12.2%
• C)14.0%
• D)15.6%

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