Question
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 30%, while stock B has a
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 30%, while stock B has a standard deviation of return 15%. The correlation coefficient between the returns on A and B is -0.45. Stock A compromises of 35% of the portfolio. What is the standard deviation of the return on this portfolio ?
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Fundamentals of Investments Valuation and Management
Authors: Bradford Jordan, Thomas Miller
7th edition
978-0078096785, 78096782, 978-0077861636, 77861639, 978-0078115660
