Problem:
Aquaman Stock has exhibited a standard deviation in stock returns of 0.7, whereas Green Lantern Stock has exhibited a standard deviation of 0.8. The correlation coefficient between the stock returns is 0.1.
Required:
Question: What is the standard deviation of a portfolio composed of 70 percent Aquaman and 30 percent Green Lantern?
A) 0.32122
B) 0.75000
C) 0.54562
D) 0.56676