Stock A has an expected return of 5%, and a standard deviation of returns of 10%....

Stock A has an expected return of 5%, and a standard deviation of returns of 10%. Stock B has an expected return of 15% and a standard deviation of returns of 20%. The correlation between the two stocks returns in 0.90. The standard deviation of an equally-weighted portfolio comprised of the two stocks will be:

more than 15%
		None of the answers listed here.
		15%
		less than 15%

Expert Solution

jeff jeffy answered 2 years ago

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