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Standard deviation of the portfolio

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Reference no: EM133070559

Suppose that you have a portfolio comprised of just two stocks (stock A and stock B). 15% of your money is in Stock A and 85% is in Stock B. Calculate the number that is closest to the standard deviation of the portfolio using the information in the table below.

Stock

Stock A

Stock B

Weight (%)

15

85

Standard Deviation (%)

18.81

13.56

The correlation between Stock A and Stock B returns is -.35 (i.e., negative .35)

Reference no: EM133070559

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