Continuing from question 6 the standard deviation of stock


Continuing from question 6, the standard deviation of stock A is 15%, while the standard deviation of stock B is 12%. If the two stocks have a correlation of -0.5, what is the standard deviation of the portfolio? How does this portfolio standard deviation compare to the standard deviation of stock A and stock B separately? Why is the portfolio standard deviation lower?

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Financial Management: Continuing from question 6 the standard deviation of stock
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