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Suppose that you have identified two stocks with risk and return properties as described in...

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Finance

Suppose that you have identified two stocks with risk and return properties as described in the table below:

Expected Return

E(Ri)

Variance

i 2

Standard Deviation

i

Correlation

1,2

Stock 1

10%

0.01

10%

-1

Stock 2

20%

0.09

30%

If you invest a half of your money in Stock 1 and the other half in Stock 2, what will be the standard deviation of this two-stock portfolio of yours?

Round your answer to the nearest 0.1% and enter your answer as a percentage. For example, if your answer is "12.3%", enter "12.3".

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