Question
1. stock A has a standard deviation of 36%. stock B has a standard deviation of 54%. the correlation between the two stocks is -.2.
1. stock A has a standard deviation of 36%. stock B has a standard deviation of 54%. the correlation between the two stocks is -.2. you must invest 58 percent of your money into stock A and the rest into Stock B. what is the standard deviation of the portfolios returns?
2. you invest 50% of your portfolio in Stock A, 20% in stock B, and 30% in Stock K The three stocks are all uncorrelated with one another. Stock A has an expected return of 13% and a standard deviation of 70%. Stock B has an expected return of 8% and a standard deviation of 32%. Stock K has an expected return of 10% and a standard deviation of 50%. what is the expected return of the portfolio?
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