Question
Andrew has a two-stock portfolio made up of Share X and Share Y. 60% of his funds are invested in Share X, and 40% of
Andrew has a two-stock portfolio made up of Share X and Share Y.
60% of his funds are invested in Share X, and 40% of his funds are invested in Share Y.
Share X has a standard deviation of 25% and Share Y has a standard deviation of 30%.
The covariance in the returns of the two stocks is 0.56
Calculate the variance of the portfolio. Express your answer as a decimal to four decimal places, for example if your answer is 0.98764, type 0.9876
Answer: Answer ( 4 decimal places)
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Personal Finance In A Public World How Technology Social Media And Ads Affect Your Money Decisions
Authors: Bob DePasquale
1st Edition
1637306652, 978-1637306659
