Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investor puts 38.00% of his investment into Cisco Systems, and the remaining 62.00% into Apple Computer. The standard deviation on Cisco Systems stock is

image text in transcribed
An investor puts 38.00% of his investment into Cisco Systems, and the remaining 62.00% into Apple Computer. The standard deviation on Cisco Systems stock is 33.00%, while the standard deviation on Apple Computer is 30.00\%. Find the standard deviation of this portfolio if the correlation between the two stocks is 0.42 . 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) ) Eric Poppovich invests money in two stocks for the upcoming year. His investment is shown below: The correlation between LBJ and Duncan is 0.50. What is the expected return for the portfolio in the coming year

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

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions