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Two assets' correlation is -0.8. The first has expected return of 9% and standard deviation of...

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Finance

Two assets' correlation is -0.8. The first has expected returnof 9% and standard deviation of 16%, the second has expected returnof 13% and standard deviation of 20%.

Calculate the minimum amount of risk (standard deviation) you'llneed to take if investing in these two assets. (Provide your answerin percent rounded to two decimals omitting the % sign)

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Transcribed Image Text

Two assets' correlation is -0.8. The first has expected returnof 9% and standard deviation of 16%, the second has expected returnof 13% and standard deviation of 20%.Calculate the minimum amount of risk (standard deviation) you'llneed to take if investing in these two assets. (Provide your answerin percent rounded to two decimals omitting the % sign)

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