Question
As a U.S. investor, you decide to hold a portfolio with 80% in the S&P 500 Index and 20% in the MSCI Emerging Markets index.
As a U.S. investor, you decide to hold a portfolio with 80% in the S&P 500 Index and 20% in the MSCI Emerging Markets index.
The expected return is 9.93% for the S&P 500 and 18.20% for the EM index.
The standard deviation is 16.21% for the S&P 500 and 33.11% for the EM index.
What will be the portfolios expected return and risk given that the covariance between the S&P 500 and the Emerging Markets index is 0.0050?
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Personal Finance
Authors: McGraw Hill
Student Edition
0078958393, 978-0078958397
