Question
Consider a portfolio that contains two stocks. Stock A has an expected return of 12% and a standard deviation of 28%. Stock B has an
Consider a portfolio that contains two stocks. Stock "A" has an expected return of 12% and a standard deviation of 28%. Stock "B" has an expected return of 4% and a standard deviation of 13%. The proportion of your wealth invested in stock "A" is 70%. The correlation between the two stocks is -0.85.
What is the expected return of the portfolio?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
