What is the standard deviation for a portfolio


Question:

Let X and Y be two stocks with the following features:

- Stock X Expected Return 14%
- Stock Y Expected Return 18%
- Stock X Standard Deviation 40%
- Stock Y Standard Deviation 54%
- Correlation(X,Y) = .25
- Mean is 15.6%

What is the standard deviation for a portfolio with 60% in stock x and 40% invested in stock Y?

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Finance Basics: What is the standard deviation for a portfolio
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