Question
Consider a portfolio that contains two stocks. Stock A has an expected return of 40% and a standard deviation of 55%. Stock B has an
Consider a portfolio that contains two stocks. Stock "A" has an expected return of 40% and a standard deviation of 55%. Stock "B" has an expected return of 5% and a standard deviation of 68%. The proportion of your wealth invested in stock "A" is 75%. The correlation between the two stocks is -0.75.
What is the expected return of the portfolio? Enter your answer as a percentage. Do not include the percentage sign in your answer.
Enter your response below rounded to 2 DECIMAL PLACES.
What is the standard deviation of the portfolio? Enter your answer as a percentage. Do not include the percentage sign in your answer.
Enter your response below rounded to 2 DECIMAL PLACES.
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Liquidity Risk Management In Banks Economic And Regulatory Issues
Authors: Roberto Ruozi, Pierpaolo Ferrari
1st Edition
3642295800, 978-3642295805
