Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investor puts 43.00% of his investment into Cisco Systems, and the remaining 57.00% into Apple Computer. The standard deviation on Cisco Systems stock is

An investor puts 43.00% of his investment into Cisco Systems, and the remaining 57.00% into Apple Computer. The standard deviation on Cisco Systems stock is 40.00%, while the standard deviation on Apple Computer is 28.00%. Find the standard deviation of this portfolio if the correlation between the two stocks is 0.55. Submit 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

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

Recommended Textbook for

Earnings Quality

Authors: Andrew P.C.

1st Edition

1521507724, 978-1521507728

More Books

Students also viewed these Finance questions