Question
10- Consider the following investment example where the covariance between stocks and bonds is -156.81. Investment Exp. Return (%) Var of Return 100% Stocks 7.34
10-
Consider the following investment example where the covariance between stocks and bonds is -156.81.
Investment | Exp. Return (%) | Var of Return |
100% Stocks | 7.34 | 90.55 |
100% Bonds | 2.82 | 38.42 |
What is the standard deviation (NOT VARIANCE) of the return for an investment portfolio of 90% stocks and 10% bonds?
Round to two digits (e.g. 5.47%)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Introduction to Operations Research
Authors: Frederick S. Hillier, Gerald J. Lieberman
10th edition
978-0072535105, 72535105, 978-1259162985
