# 2024 – Hyacinth Macaw invests 74 of her funds in stock I and the balance in stock J The standard deviation

Finance – 2024

Hyacinth Macaw invests 74% of her funds in stock I and the balance in stock J. The standard deviation of returns on I is 13%, and on J it is 27%. |

a. |
Calculate the variance of portfolio returns, assuming the correlation between the returns is 1.0. |

Portfolio variance | n/r |

b. |
Calculate the variance of portfolio returns, assuming the correlation is 0.7. |

Portfolio variance | n/r |

c. |
Calculate the variance of portfolio returns, assuming the correlation is 0. |

Portfolio variance | n/r |

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