Question
A portfolio consists of Stock A and Stock B The summary statistics for these 2 stocks are as follow. Assume we place equal 90% weight
A portfolio consists of Stock A and Stock B The summary statistics for these 2 stocks are as follow. Assume we place equal 90% weight in stock A. Calculate the portfolio risk? (10) b) Now replace stock B with a Tbill and calculate the portfolio risk again. A B Return (%) 12 20 Standard Deviation (%) 15.8 25.5 Covariance -120%
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th Edition
1260772381, 978-1260772388
