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Consider a portfolio consisting of 60% Alphabet stock and 40% Microsoft stock. Alphabet stock has an expected return of 25% and a standard deviation
Consider a portfolio consisting of 60% Alphabet stock and 40% Microsoft stock. Alphabet stock has an expected return of 25% and a standard deviation of 30%. Microsoft stock has an expected return of 20% and a standard deviation of 20%. The stocks have a correlation of 0.55. What is the expected return and standard deviation of the portfolio?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
Concise 9th Edition
1305635937, 1305635930, 978-1305635937
