Question
Consider a $1 million portfolio consisting of $700,000 invested in IBM Inc. shares and $300,000 invested in Apple Inc. shares. IBM shares have a per-annum
Consider a $1 million portfolio consisting of $700,000 invested in IBM Inc. shares and $300,000 invested in Apple Inc. shares. IBM shares have a per-annum return standard deviation of 20% whereas Apple Inc. shares have a per-annum return standard deviation of 15%; the correlation between the two returns is .35. What is the per-annum standard deviation of the portfolios return?
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Financial Management Of Health Care Organizations
Authors: William N. Zelman, Michael J. McCue, Alan R. Millikan, Noah D. Glick
2nd Edition
063123098X, 9780631230984
