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Determining the standard deviation of returns

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Reference no: EM131862170

You have a portfolio consisting of only two assets: $100,000 worth of Stock A, which has a standard deviation of returns of 10%, and $400,000 worth of Stock B, which has a standard deviation of returns of 30%. A and B have a correlation coefficient a 1.0. What is the variance of the portfolio?

a. 0.2000

b. 0.2600

c. .04000

d. 0.0676

e. Cannot be determined based on information given

Please NO Excel calculations, please show all work.

Reference no: EM131862170

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