You have the following information for Stock A and Stock B:
Expected rate of return:
Stock A: .12
Stock B: .06
Standard deviation:
Stock A: .50
Stock B: .30
Correlation between the two stocks: .4
If you invest $2,000 and $8,000 in Stock A and Stock B respectively, what is the standard deviation of the portfolio?
a. .5110
b. .4799
c. .6013
d. .1131
e. .2946