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Mr. Jones has a 2-stock portfolio with a total value of $550,000. $205,000 is invested in...

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)? Calculate with at least 4 decimal places and round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.

A, 7.00%

B. 9.33%

C. 10.55%

D. 11.11%

E. 11.57%

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