What Is the Standard Deviation of an Equally Weighted Portfolio

question 45

Multiple Choice

What is the standard deviation of an equally weighted portfolio of two stocks with a covariance of 0.009, if the standard deviation of the first stock is 15% and the standard deviation of the second stock is 20%?

• A) 2.0%
• B) 2.1%
• C) 7.8%
• D) 14.2%
• E) 14.7%

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