You are composing a two-stock portfolio consisting of 40 percent Stock P and 60 percent Stock Q. Given the following information, find the standard deviation of this portfolio.
Company | Beta | Expected Return | Variance | Covariance |
---|---|---|---|---|
P | 1.6 | 0.18 | 0.30 | COVP,Q = 0.080 |
Q | 2.8 | 0.22 | 0.04 |
Round to the nearest hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.)
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