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Apple has expected return of 12% and a standard deviation of 20%. IBM has an expected return of 10% and a standard deviation of 18%.
Apple has expected return of 12% and a standard deviation of 20%. IBM has an expected return of 10% and a standard deviation of 18%. The correlation between the stocks is .55. If we invest 60% of our portfolio in Apple and rest in IBM, the resulting portfolio would be an expected return of ...
a)10%
b)11%
c)11.2%
d)12%
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Bond Markets Analysis And Strategies
Authors: Frank J.Fabozzi
7th Edition
0136078974, 978-0136078975
