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What is the standard deviation of a portfolio

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The expected return and standard deviation of a bond fund (B) are 6% and 10%, respectively. The expected return and standard deviation of a stock fund (S) are 22% and 35%, respectively. The correlation between two fund returns is 0.6. What is the standard deviation of a portfolio that invests 70% in B and the rest in S?

Stock A's return has a standard deviation of 0.05. Stock B's return has a standard deviation of 0.06. The correlation between Stocks A and B is 1 (i.e., the two stock returns are perfectly and positively correlated). What is the standard deviation of a portfolio investing 30% in A and the rest in B?

Reference no: EM133121778

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