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Alpha stock exhibits a standard deviation in stock returns of 0.3. Gamma stock exhibits a standard deviation in stock returns of 0.4. The correlation coefficient
Alpha stock exhibits a standard deviation in stock returns of 0.3.
Gamma stock exhibits a standard deviation in stock returns of 0.4.
The correlation coefficient between the returns of Alpha and Gamma stock is 0.7.
What is the variance of a portfolio composed of 60% Alpha stock and 40% Gamma stock?
Gamma stock exhibits a standard deviation in stock returns of 0.4.
The correlation coefficient between the returns of Alpha and Gamma stock is 0.7.
What is the variance of a portfolio composed of 60% Alpha stock and 40% Gamma stock?
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To calculate the variance of a portfolio we need to use the formula Variance of a portfolio w12 vari...
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
