You observe the stock returns on two publicly-traded commercial banks, Chase MadHattan (CMH) and Spitigroup (S)....

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Finance

You observe the stock returns on two publicly-traded commercialbanks, Chase MadHattan (CMH) and Spitigroup (S). Their historicalreturns for the past three years are:

CMH: -30%, -45%,   15%;

S: -20%,   -30%,   5%.

Consider a portfolio that consists of 40% of CMH and 60% of S.Calculate the standard deviation of this portfolio. Answer as apercentage with two decimal places, as in 1.23%.

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You observe the stock returns on two publicly-traded commercialbanks, Chase MadHattan (CMH) and Spitigroup (S). Their historicalreturns for the past three years are:CMH: -30%, -45%,   15%;S: -20%,   -30%,   5%.Consider a portfolio that consists of 40% of CMH and 60% of S.Calculate the standard deviation of this portfolio. Answer as apercentage with two decimal places, as in 1.23%.

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