Question
Calculate the standard deviation of a portfolio consisting of 20 percent stock P and 80 percent stock Q. Company Beta Expected Return Standard Deviation Correlation
Calculate the standard deviation of a portfolio consisting of 20 percent stock P and 80 percent stock Q.
| Company | Beta | Expected Return | Standard Deviation | Correlation Coefficient |
|---|---|---|---|---|
| P | 1.3 | 28% | 50% | CORRP,Q = 0.3 |
| Q | 2.6 | 12% | 40% |
Round to the nearset hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.)
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Finance For Nonfinancial Managers
Authors: Gene Siciliano
2nd Edition
0071824367, 978-0071824361
