Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 18% while stock B has a

image text in transcribed
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 18% while stock B has a standard deviation of return of 13%. The correlation coefficient between the returns on A and B is 0.22. Stock A comprises 48% of the portfolio while stock B comprises the rest. What is the standard deviation of the return on this portfolio? Enter answer in percents, to two decimal places

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

Step: 3

blur-text-image

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

Intermediate Accounting

Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones

11th edition

978-0538467087, 9781111781262, 538467088, 1111781265, 978-0324659139

More Books

Students also viewed these Accounting questions