Question
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 5% while stock B has a
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of
return of 5% while stock B has a standard deviation of return of 15%. The correlation
coefficient between the returns on A and B is .5. Stock A comprises 40% of the portfolio
while stock B comprises 60% of the portfolio. The variance of return on the portfolio is
__________.
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Governance Of Financial Management
Authors: John Carver, Miriam Carver
1st Edition
0470392541, 9780470392546
