The standard deviation of returns for merck and home depot


You form a portfolio of two stocks: $400 in Merck and $600 in Home Depot. The standard deviation of returns for Merck and Home Depot are 16% and 24%, respectively. The correlation between these two stocks is 0.19. What is the standard deviation of the portfolio?

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Finance Basics: The standard deviation of returns for merck and home depot
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