PdfPrep.com

The correlation coefficient between the returns of the stocks is .75.?

What is the portfolios standard deviation if you put 25% of your money into stock A which has a standard deviation of 15% and rest into stocks B which has a standard deviation of 10%.

The correlation coefficient between the returns of the stocks is .75.?
A . 11.25%
B . 10.60%
C . 12.40%
D . 15.00%

Answer: B

Exit mobile version