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What is the standard deviation of a portfolio

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Question - The expected return and standard deviation of a bond fund (B) is 4% and 9%, respectively. The expected return and standard deviation of a stock fund (S) is 12% and 25%, respectively. The correlation between the two fund returns is 0.1. What is the standard deviation of a portfolio that invests 40% in S and the rest in B?

Stock A's return has a variance of 0.0016. Stock B's return has a variance of 0.0036. The correlation between A and B is -1 (i.e., the two stock returns are perfectly negatively correlated). What is the standard deviation of a portfolio investing 50% and 50% in A and B?

Reference no: EM133123837

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