# Standard deviation of return for a portfolio

Stock X has a standard deviation of return of 10%. Stock Y has a standard deviation of return of 15%. The correlation coefficient between stocks is 0.5. If you invest 60% of the funds in stock X and 40% in stock Y, what is the standard deviation of a portfolio? Justify your answer.

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Stock X has a standard deviation of return of 10%. Stock Y has a standard deviation of return of 15%. The correlation coefficient between stocks is 0.5. If you invest 60% of the funds ...

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This solution calculates standard deviation of return for a portfolio that has two stocks.

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