Question: You put half of your money in a stock that has an expected return of 14% and a standard deviation of 24%. You put the rest of your money in another stock that has an expected return of 6% and a standard deviation of 12%. The two stocks have a correlation coefficient of 0.55. The standard deviation of the resulting portfolio will be:
a) more than 18% but less than 24%
b) equal to 18%
c) less than 18%
d) there is not sufficient information to answer this question