What is wendy portfolio risk

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Wendy invests $25 in Stock A and $75 in stock B. The expected returns of stock A and B are 10% and 4%, respectively.

Use the information in the question above. Stock A and stock B have sigmas of 50% and 10% respectively. The two stocks have a correlation of 0. What is Wendy's portfolio risk (sigma)?

A) 17.38% B) 14.58% C) 10.48% D) 15.38%

Reference no: EM131568601

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