The expected return on ZV next year is 12% with a standard deviation of 20%.The expected return on TNA next year is 24% with a standard deviation of 30%.The correlation between the two shares is -.6.If Hannah makes equal investments in ZV and TNA, what is the standard deviation of her portfolio?
A) 22.47%
B) 12.04%
C) 1.45%
D) 16.00%
Correct Answer:
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