What is the standard deviation of a portfolio of two stocks given the following data: Stock A has a standard deviation of 18%. Stock B has a standard deviation of 14%. The portfolio contains 40% of stock A, and the correlation coefficient between the two stocks is -.23.
A) 9.7%
B) 12.2%
C) 14%
D) 15.6%
Correct Answer:
Verified
Q64: Which of the following statements is (are)
Q65: Investing in two assets with a correlation
Q66: As you lengthen the time horizon of
Q67: Investing in two assets with a correlation
Q68: You run a regression for a stock's
Q70: You find that the annual Sharpe ratio
Q71: Which of the following correlation coefficients will
Q72: You run a regression for a stock's
Q73: What is the standard deviation of a
Q74: What is the most likely correlation coefficient
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents