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Business, 10.12.2019 22:31 astra

Acollege student owns two securities: apple and coca- cola. apple has an expected return of 15 percent with a standard deviation of those returns being 11 percent. coca-cola has an expected return of 12 percent, and a standard deviation of 7 percent. the correlation of returns between apple and coca-cola is 0.81. if the portfolio consist of $6,000 in coca-cola and $4,000 in apple, what is the expected standard deviation of portfolio returns? hint: check the calculation of standard deviation for a portfolio of two stocks.

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