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Potvin Potvin
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7 years ago
You have decided to create a portfolio with two assets: stock X and stock Y. You invest 20% of your funds in X and 80% of your funds in stock Y. The standard deviation of X is 30% and the standard deviation of Y is 40%. The two stocks have a correlation coefficient of - 0.5. What is the portfolio's standard deviation?
A) 30.00%
B) 29.46%
C) 33.24%
D) 36.92%
E) 40.00%
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Corporate Finance Online

Corporate Finance Online


Edition: 1st
Authors:
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BlimpBlimp
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7 years ago
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Pol. Sci. Major
Minoring in Business
Columbia University Sophomore

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Potvin Author
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7 years ago
I'm impressed by the service offered here
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