# Standard Deviation of a portfolio

Stock A has a standard deviation of return of 50%. Stock B has a standard deviation of return of 40%. The two stocks have a correlation of 60%. What is the standard deviation of return of a portfolio that is 25% Stock A and 75% Stock B?

PLEASE REFER TO THE ATTACHED MS_WORD FILE, for details. thank you.

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variance & standard deviation of a portfolio

Here's the problem:

Stock A has a standard deviation of return of 50%. Stock B has a standard deviation of return of 40%. The two stocks have a correlation of 60%. What is the standard deviation of return of a portfolio that is 25% Stock A and 75% Stock B?

Here are the equations I have:

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#### Solution Summary

The solution explains how to calculate the standard deviation of a two stock portfolio.