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What will be the standard deviation of portfolio return

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Reference no: EM132494720

Question 1: You are creating a portfolio of two stocks. The first one has a standard deviation of 20% and the second one has a standard deviation of 50%. The correlation coefficient between the returns of the two is 0.2. You will invest 70% of the portfolio in the first stock and the rest in the second stock. What will be the standard deviation of this portfolio's returns?

Option a. 29%

Option b. 22.47%

Option c. 31%

Option d. 40.53%

Option e. 50.50%

Reference no: EM132494720

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