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 %