Question
A portfolio consists of two securities: a 90-day T-bill and the S&P/TSX Composite. The expected return on the T-bill is 4.5 percent. The expected return
A portfolio consists of two securities: a 90-day T-bill and the S&P/TSX Composite. The expected return on the T-bill is 4.5 percent. The expected return on the S&P/TSX Composite is 12 percent with a standard deviation of 20 percent. What is the portfolio standard deviation if the expected return for this portfolio is 15 percent?
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Fundamentals of Investment Management
Authors: Geoffrey Hirt, Stanley Block
10th edition
0078034620, 978-0078034626
