You plan to invest 39% of your portfolio in Company A with the remainder to be invested in Company B. The standard devia

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answerhappygod
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You plan to invest 39% of your portfolio in Company A with the remainder to be invested in Company B. The standard devia

Post by answerhappygod »

You plan to invest 39% of your portfolio in Company A with the
remainder to be invested in Company B. The standard deviation of
Company A’s stock returns is 17%. The standard deviation of Company
B’s stock returns is 22%. The correlation between the stock returns
of Company A and Company B is 0.69. What is the standard deviation
of your portfolio’s returns (as a percentage to two decimal
places)?
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