A portfolio has 45% of its value in IBM shares and the rest in Microsoft (MSFT). The volatility of IBM and MSFT are 33% and 35%, respectively, and the correlation between IBM and MSFT is 0. What is the standard deviation of the portfolio?

A) 19.45%
B) 27.96%
C) 34.04%
D) 24.31%

Answer: D

Business

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