Question
1.) Labyrinth Electronics stock has an expected return of 14% and a standard deviation of 19%. Flux Navigation has an expected return of 28% and
1.) Labyrinth Electronics stock has an expected return of 14% and a standard deviation of 19%. Flux Navigation has an expected return of 28% and a standard deviation of 37%. The correlation coefficient between Labyrinth and Flux is 0.4. What is the expected return, in percent, of a portfolio invested 20% in Labyrinth and 80% in Flux?
2.) Techcity has a standard deviation of 16% and Techsio has a standard deviation of 5%. The correlation coefficient between both stocks is 0.5. What is the standard deviation (in percent) of a portfolio invested 50% in Techcity and 50% in Techsio?
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