Standard deviation of portfolio returns

CFA Level I Quant
#1

Can anyone help me how to use ba ii plus on this one?

A two-stock portfolio includes stocks with the following characteristics:

                       |**Stock 1**|**Stock 2**|

Expected return 7% 10%
Standard deviation 12% 25%
Portfolio weights 0.30 0.70
Correlation 0.20

What is the standard deviation of portfolio returns?

  1. 14.91%
  2. 18.56%
  3. 21.10%
#2

There is no preprogrammed function on the BAII for this: it is a “plug 'n chug” exercise using that ugly portfolio variance formula I’m sure you have seen. :man_shrugging:

#3

Thanks for the fast reply! Guess i have to memorize that then.