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Problem:

Aquaman Stock has exhibited a standard deviation in stock returns of 0.7, whereas Green Lantern Stock has exhibited a standard deviation of 0.8. The correlation coefficient between the stock returns is 0.1.

Required:

Question: What is the standard deviation of a portfolio composed of 70 percent Aquaman and 30 percent Green Lantern?

A) 0.32122

B) 0.75000

C) 0.54562

D) 0.56676

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91166482

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