Calculate the expected return and risk (standard deviation of returns) on a portfolio consisting of two assets.

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Calculate the expected return and risk (standard deviation of returns) on a portfolio consisting of two assets. Asset 1 has an expected return of 0.09 and a standard deviation of returns of 0.08. For asset 2, they are 0.13 and 0.14, respectively.

The correlation coefficient of the returns on asset 1 and asset 2 is 0.5.

The portfolio share of each asset is 50 percent.

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Financial Markets Banking And Monetary Policy

ISBN: 9781118872239

1st Edition

Authors: Thomas D. Simpson

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Question Posted: Feb 02, 2024 09:48 AM

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Calculate the expected return and risk (standard deviation of returns) on a portfolio consisting of two assets.

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Financial Markets Banking And Monetary Policy

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