Question
Asset (A) Asset (B) E(R A ) = 10% E(R B ) = 8% (s A ) = 6% (s B ) = 5% W
Asset (A) Asset (B) E(RA) = 10% E(RB) = 8% (sA) = 6% (sB) = 5% WA = 0.3 WB = 0.7 COVA,B = 0.0008 = [(wA^2 * A^2) + (wB^2 * B^2) + (2 * wA * wB * COVAB)] What is the standard deviation of a portfolio of two risky assets if the expected return E(Ri), standard deviation (si), covariance (COVi,j), and asset weight (Wi) are as shown above?
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Entrepreneurial Finance Concepts And Cases
Authors: Miranda S. Lam, Gina Vega
1st Edition
1138013609, 978-1138013605
