Aquaman stock has exhibited a standard deviation in returns of 0.7, whereas Green Lantern stock has exhibited a standard deviation of 0.8. The correlation coefficient between the stock returns is 0.1. What is the standard deviation of a portfolio composed of 70% Aquaman and 30% Green Lantern?© BrainMass Inc. brainmass.com June 4, 2020, 2:32 am ad1c9bdddf
Weight of Aquaman=p1=70%
Weight of Green Lantern=p2=30%
Standard deviation of Aquaman=sigma 1=0.7
Solution describes the steps to calculate the standard deviation of returns in the given case.