Question
A stock has an expected return of 10% and a standard deviation of 20%. The stock is held in a portfolio with a total value
A stock has an expected return of 10% and a standard deviation of 20%. The stock is held in a portfolio with a total value of $500,000. The portfolio is comprised of 50% stock and 50% bonds, which have an expected return of 5% and a standard deviation of 10%. What is the expected return and standard deviation of the portfolio?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
