What is the risk level of the portfolio

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You are considering investing in a portfolio consisting of 40% Electric General and 60% Buckstar. If the risk (measured using standard deviation) of Electric General is 16% and the risk of Buckstar is 9%, and the correlation between the returns of the stock is -0.25 (i.e. negative 0.25) , then, what is the risk level (measured as standard deviation) of the portfolio? (use atleast 4 decimal places in each stage)

A) 7.27% B) 0.53% C) 8.37% D) 9.37%

Reference no: EM131568608

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