If you form a 50-50 portfolio of the two stocks what is the


Here are the expected returns on two stocks:

Returns

Probability X Y

0.1 -20% 10%

0.8 20 15

0.1 40 20

If you form a 50-50 portfolio of the two stocks, what is the portfolio's standard deviation?

a. 8.1%

b. 10.5%

c. 13.4%

d. 16.5%

e. 20.0%

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Financial Management: If you form a 50-50 portfolio of the two stocks what is the
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