A portfolio has 40% of its value in ABC shares and the rest in XYZ stock. The standard deviation of

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A portfolio has 40% of its value in ABC shares and the rest in XYZ stock. The standard deviation of

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A portfolio has 40% of its value in ABC shares and the rest in XYZ stock. The standard deviation of ABC and XYZ are 35% and 30%, respectively, and the correlation between ABC and XYZ is 0.4. What is the standard deviation of the portfolio?

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Let s assume the total value of the portfolio is 1 or 100 Given that 40 of the portfoli

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