Question
A portfolio consisting of Stocks 1 and 2 has an expected return of 14%. What is the standard deviation of this portfolio given the information
A portfolio consisting of Stocks 1 and 2 has an expected return of 14%. What is the standard deviation of this portfolio given the information in the following table?
|
| Stock 1 | Stock 2 |
| Expected Return | 15% | 10% |
| Standard Deviation | 12% | 18% |
| Correlation (1,2) | 0.5 | |
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Financial Management And Policy
Authors: James C. Van Horne
11th Edition
0137512236, 9780137512232
