Security A has an expected return of 12 with a standard devi

Security A has an expected return of 12% with a standard deviation of 44%. Security B has an expected return of 18% with a standard deviation of 58%. The correlation coefficient between Stocks A and B is 0. What is the standard deviation, in percentages, of a portfolio invested 45% in Stock A and 55% in Stock B?

Portfolio=(0.45)Stock A+(0.55)Stock B

Variance(Portfolio)=(.45)² Variance(Stock A)+(0.55)² Variance(Stock B) [no covariance term,since correlation coefficient between stocks A and B is 0] = 1409.65

Standard deviation in percentages of a portfolio invested 45% in Stock A and 55% in stock B

=sqrt(1409.65)=37.5453%

Security A has an expected return of 12% with a standard deviation of 44%. Security B has an expected return of 18% with a standard deviation of 58%. The correl

Security A has an expected return of 12 with a standard devi

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