stocks a and b each have an expected return of 12%, a beta of 1.2, and a standard deviation of 25%. the returns on the two stocks have a correlation of 0.6. portfolio p has 50% in stock a and 50% in stock b. which of the following statements is correct?

standard deviationthat is less than 25%standard deviationof the stocks added in accordance with their weight in the portfolio. For example, in this scenario, bothstockshave a weight of 50% and a standard deviation of 25%, so their sum will be.standard deviation: