You own a portfolio that has 35% invested in asset A, and 65% invested in asset B. Asset A's standard deviation is 12% and asset B's standard deviation is 18%. The correlation coefficient between the two assets is -0.7. The expected return on the portfolio is 13%. What is the portfolio standard deviation?
Weight of A=p1=35%
Weight of B=p2=65%
Standard deviation of A=sigma 1=12%
Standard deviation of B=sigma ...
Solution describes the steps to calculate the portfolio standard deviation.