Return Standard Deviation

Treasury bills 6.0%    0%    

Stock P 10.5       13       

Stock Q 16.5       31       

Stock R 20.5       23       

Here are returns and standard deviations for four investments.

Calculate the standard deviations of the following portfolios.

a. 50% in Treasury bills, 50% in stock P. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Standard deviation %

b. 50% each in Q and R, assuming the shares have: (Do not round intermediate calculations. Round your answers to 1 decimal place.)

Standard Deviation

Perfect positive correlation %

Perfect negative correlation %

No correlation %