Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 14%, while stock Bhas a standard
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 14%, while stock Bhas a standard deviation of return of 20%. Stock A comprises 40% of the portfolio, while stock B comprises 60% of the portfolio. If the variance of return on the portfolio is .028, the correlation coefficient between the returns on A and B is .772 .779 387 873
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668e608fced98_863668e608f38d6e.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started