A portfolio consists of two stocks with Stock A having a weight of 41 percent.Stock A has a standard deviation of 16.78 percent,and Stock B's standard deviation is 8.44 percent.The stocks have a covariance of −0.0063.What is the portfolio variance?
A)0)001253
B)0)004165
C)0)004961
D)0)019097
E)0)034141

Question

Quizplus · Accepted Answer

σ² = 0.412(0.1678)² + 2(0.41)(1 - 0.41)(-0.0063)+ (1 - 0.41)²(0.0844)²= 0.004165

A Portfolio Consists of Two Stocks with Stock a Having