Question
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 15%, while stock B has a
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 15%, while stock B has a standard deviation of return of 9%. Stock A comprises 60% of the portfolio, while stock B comprises 40% of the portfolio. If the variance of return on the portfolio is 0.005, the correlation coefficient between the returns on A and B is _________.
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 15%, while stock B has a standard deviation of return of 9%. The correlation coefficient between the returns on A and B is -0.5.Stock A comprises 80% of the portfolio, while stock B comprises 20% of the portfolio. The standard deviation of the return on this portfolio is _________.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started