Question
Calculate the standard deviation and return of a portfolio consisting of 60% of Security A and 40% of Security B. Assume correlation coefficient between stock
Calculate the standard deviation and return of a portfolio consisting of 60% of Security A and 40% of Security B. Assume correlation coefficient between stock A and stock B is 0.55. Interpret the benefit of portfolio over individual stock investment (in case of security A and B).\n
Year Security A return(%) Security B return(%)
2015 10 18
2016 12 15
2017 9 11
2018 10 9
2019 5 7
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