Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investor puts 18.00% of his investment into Cisco Systems, and the remaining 82.00% into Apple Computer. The standard deviation on Cisco Systems stock is

An investor puts 18.00% of his investment into Cisco Systems, and the remaining 82.00% into Apple Computer. The standard deviation on Cisco Systems stock is 33.00%, while the standard deviation on Apple Computer is 33.00%. Find the standard deviation of this portfolio if the covariance between the two stocks is 0.10.

Answer Format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

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_2

Step: 3

blur-text-image_3

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

Technical Analysis Of Stock Trends

Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti

8th Edition

0814406807, 978-0814406809

More Books

Students also viewed these Finance questions