Question
A portfolio consists of two stocks with returns that are not perfectly correlated: $10,000 of stock Charlie, which has an expected return of 60% and
A portfolio consists of two stocks with returns that are not perfectly correlated:
$10,000 of stock Charlie, which has an expected return of 60% and a standard deviation of returns of 30%
$10,000 of stock Delta, which has an expected return of 40% and a standard deviation of returns of 20%
Which of the below statements is true about the portfolio?
The standard deviation is not 50% and the expected return is not 25%. | ||
The standard deviation is 50% and the expected return is 25%. | ||
The standard deviation is not 50% and the expected return is 25%. | ||
The standard deviation is 50% and the expected return is not 25%. |
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