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JPMorgan Chase (JPM) manages a portfolio created by 25% of the funds in Target Corporation (TGT) and the balance of the funds in The Home Depot, Inc. (HD). They exhibit standard deviation, 15% and 10%, respectively. If the correlation coefficient is 0.75, the portfolio’s standard deviation is closest to   A. 24.08%. B. 19.15%. C. 14.91%. D. 10.61%.

JPMorgan Chase (JPM) manages a portfolio created by 25% of the funds in Target Corporation (TGT) and the balance of the funds in The Home Depot, Inc. (HD). They exhibit standard deviation, 15% and 10%, respectively. If the correlation coefficient is 0.75, the portfolio’s standard deviation is closest to   A. 24.08%. B. 19.15%. C. 14.91%. D. 10.61%.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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JPMorgan Chase (JPM) manages a portfolio created by 25% of the funds in Target Corporation (TGT) and the balance of the funds in The Home Depot, Inc. (HD). They exhibit standard deviation, 15% and 10%, respectively. If the correlation coefficient is 0.75, the portfolio’s standard deviation is closest to


 

A.

24.08%.

B.

19.15%.

C.

14.91%.

D.

10.61%.

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