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Common Stock C has a standard deviation of return of 10 percent. Common Stock D has a standard deviati return of 20 percent. The correlation coefficient between the two stocks is 0.5. If you invest 60 percent of y funds in stock C and 40 percent in Common stock D, what is the standard deviation of your portfolio? O 21.0 percent 14.8 percent 103 percent

Common Stock C has a standard deviation of return of 10 percent. Common Stock D has a standard deviati return of 20 percent. The correlation coefficient between the two stocks is 0.5. If you invest 60 percent of y funds in stock C and 40 percent in Common stock D, what is the standard deviation of your portfolio? O 21.0 percent 14.8 percent 103 percent

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter3: Risk And Return: Part Ii
Section: Chapter Questions
Problem 3P: Two-Asset Portfolio Stock A has an expected return of 12% and a standard deviation of 40%. Stock B...
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Common Stock C has a standard deviation of return of 10 percent. Common Stock D has a standard deviation of return of 20 percent. The correlation coefficient between the two stocks is 0.5. If you invest 60 percent of your funds in stock C and 40 percent in Common stock D, what is the standard deviation of your portfolio? O 21.0 percent O 14.8 percent 10.3 percent O 12.2 percent
Transcribed Image Text:Common Stock C has a standard deviation of return of 10 percent. Common Stock D has a standard deviation of return of 20 percent. The correlation coefficient between the two stocks is 0.5. If you invest 60 percent of your funds in stock C and 40 percent in Common stock D, what is the standard deviation of your portfolio? O 21.0 percent O 14.8 percent 10.3 percent O 12.2 percent
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