Multiple Choice
Stock G has a standard deviation of 49 percent, and Stock H has a standard deviation of 56 percent. The covariance between the two assets is 0.046. What is the standard deviation of a portfolio with 40 percent of its assets invested in Stock G?
A) 41.64%
B) 33.35%
C) 44.07%
D) 39.52%
E) 35.31%
Correct Answer:
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