Question
31.) estion 31 You can form a portfolio of two assets, A and B, whose returns have the following characteristics: If you demand an expected
31.)
estion 31
You can form a portfolio of two assets, A and B, whose returns have the following characteristics:
If you demand an expected return of 19%, what is the portfolio's standard deviation?
| Stock | Expected return | Standard deviation | Correlation |
| A | 12% | 20.00 |
|
|
|
|
| 0.75 |
| B | 22% | 35.00 |
|
| 8.57% | ||
| 22.95% | ||
| 29.27% | ||
| 26.51% | ||
| 27.32% |
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Investing From Scratch A Handbook For The Young Investor
Authors: James Lowell
1st Edition
014303684X, 978-0143036845
