# Calculate variance & standard deviation for a portfolio

A portfolio is made up of 75% of stock 1 and 25% of stock 2. Stock 1 has a variance of .08 and Stock 2 has a variance of .035. The covariance between the stocks is -.001. Calculate the variance & standard deviation of this portfolio and please explain your work.

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#### Solution Summary

The solution shows the formulas and calculations to arrive at the correct answer to the problem.

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