Question
Assume we own two stocks, assets A and B. We have invested 10,000 in asset A and 6,000 in asset B. The return on asset
Assume we own two stocks, assets A and B. We have invested 10,000 in asset A and 6,000 in asset B. The return on asset A is 25% whilst that of B is 15%. The standard deviation of asset A is 12% and that of B is 8%. a. What is the expected return on the portfolio? b. If the correlation between the two assets is 0.8, calculate the risk of the portfolio.
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The New Managed Account Solutions Handbook
Authors: Stephen D. Gresham, Arlen S. Oransky
1st Edition
0470222786, 978-0470222782
