Question
Assume that you have a portfolio (P) with $1,000 invested in Stock A and $3,000 in Stock B. You also have the following information on
Assume that you have a portfolio (P) with $1,000 invested in Stock A and $3,000 in Stock B. You also have the following information on both stocks:
Stock A Stock B
Expected Return (A) 0.15 (B) 0.24
Standard Deviation (A) 0.16 (B) 0.20
The covariance between A and B is - .0256
Calculate the expected return for portfolio P using the data provided.
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Handbook Of Consumer Finance Research
Authors: Jing J. Xiao
1st Edition
1441926046, 978-1441926043
