Question
1.Portfolio Standard Deviation and Diversification The standard deviations of returns on assets A & B are 8% and 12%, respectively. A portfolio is constructed consisting
1.Portfolio Standard Deviation and Diversification
The standard deviations of returns on assets A & B are 8% and 12%, respectively. A portfolio is constructed consisting of 40% in Asset A and 60% in Asset B. Calculate the portfolio standard deviation if the correlation of returns between two assets is:
A)1
B)0.4
C)0
D)-1
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
15th edition
134796551, 134796550, 978-0134796550
