A portfolio has 40% of its value in IBM shares and the rest in Microsoft (MSFT) .The volatility of IBM and MSFT are 40% and 30%,respectively,and the correlation between IBM and MSFT is -0.3.What is the standard deviation of the portfolio?
A) 19.95%
B) 18.65%
C) 22.17%
D) 20.18%
Correct Answer:
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