What would be the expected risk on mr jones portfolio


Mr. Jones has a 2-stock portfolio with a total value of $550,000. $205,000 is invested in Stock A and the remainder is invested in Stock B. If standard deviation of Stock A is 19.45%, Stock B is 10.60%, and correlation between Stock A and Stock B is –0.10, what would be the expected risk on Mr. Jones’ portfolio (standard deviation of the portfolio return)?

Answer is either: a). 10.55% b). 7.00% c). 11.57% d). 9.33% e). 11.11%

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Financial Management: What would be the expected risk on mr jones portfolio
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