You form a portfolio of two stocks: $400 in Merck and $600 in Home Depot. The standard deviation of returns for Merck and Home Depot are 16% and 24%,...

You form a portfolio of two stocks: $400 in Merck and $600 in Home Depot. The standard deviation of returns for Merck and Home Depot are 16% and 24%, respectively. The correlation between these two stocks is 0.19.   What is the standard deviation of the portfolio?

28.1%

21.5%

20.7%

16.8%

8.7%