Question
All parts please be accurate! 1) Standard deviation of the portfolio with stock A is ___%.(Round to two decimal places.) 2) Standard deviation of the
All parts please be accurate!
1) Standard deviation of the portfolio with stock A is ___%.(Round to two decimal places.)
2) Standard deviation of the portfolio with stock B is ___%.(Round to two decimal places.)
3)Which stock should you add and why?(Select the best choice below.)
A. Add Upper A because the portfolio is less risky when Upper A is added.Add A because the portfolio is less risky when A is added.
B. Add Upper B because the portfolio is less risky when Upper B is added.Add B because the portfolio is less risky when B is added.
C. Add either one because both portfolios are equally risky.
You have a portfolio with a standard deviation of 30% and an expected return of 18%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 30% of your money in the new stock and 70% of your money in your existing portfolio, which one should you add? Standard deviation of the portfolio with stock A is %. (Round to two decimal places.)Step by Step Solution
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