Answer:
12.16%.
Explanation:
Standard Deviation is a financial metric that is used to quantify risk. It is used for risk management strategies. One of the main uses of Standard Deviation is to calculate the Value at Risk for a Portfolio, which is the minimum/maximum loss that a portfolio can incur over a given period of time. The formula that is used to calculate the Standard Deviation of Portfolio is attached.
Standard Deviation of Portfolio =
[tex]\sqrt{x} (.1)x^{2} * (.6)x^{2} + (.2)x^{2} * (.4)x^{2} + 2 * (.6) * (.4) * (.5) * (.1) * (.2)[/tex] = 12.16%.
