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Are my answers in bold below correct? Stock A: Expected return is 10% Stock A: Std deviation is 30% Stock B: Expected return i 13%
Are my answers in bold below correct?
Stock A: Expected return is 10%
Stock A: Std deviation is 30%
Stock B: Expected return i 13%
Stock B: Std deviation is 45%
Correlation between A and B is -0.75
Stock A beta is 1.30
Stock B beta is 1.20
% portfolio in Stock A is 40%
% portfolio in Stock B is 60%
Calculate the expected return of the portfolio = 11.8%
Calculate the standard deviation of the portfolio = 19.7%
Calculate beta of portfolio = -1.1
Thank you!
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