Stock A: expected return= 10%; standard deviation= 40% Stock B: expected return= 20%; standard deviation= 23% You

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Stock A: expected return= 10%; standard deviation= 40%

Stock B: expected return= 20%; standard deviation= 23%

You short sold 200 shares of A at 15 $ per share and purchased 500 shares of B at 15$ per share.Thecorrelation between securities is -0.32. What is the standard deviation of theportfolio?

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Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

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Question Posted: Apr 12, 2012 04:23 AM

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Stock A: expected return= 10%; standard deviation= 40% Stock B: expected return= 20%; standard deviation= 23% You

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Computation of the standard deviation of the portfolio Stock A investment 20015 3000 ...View the full answer

Intermediate Accounting

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