Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A portfolio consists of two stocks: 30% of Stock 1 with standard deviation of 39.44% and 70% of Stock 2 with a standard deviation of

image text in transcribed
A portfolio consists of two stocks: 30% of Stock 1 with standard deviation of 39.44% and 70% of Stock 2 with a standard deviation of 47.29%. The correlation of Stocks 1 and 2 is 0.4. What is the standard deviation of this portfolio? Enter as a percent and round to the nearest tenth of a percent

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Options Futures And Other Derivatives

Authors: John C. Hull

7th Edition

0136015867, 9780136015864

More Books

Students also viewed these Finance questions

Question

=+ (c) Show that a compact negligible set is trifling.

Answered: 1 week ago