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Consider the following information for two stocks.Assume that portfolio XY is 50% invested in stock X and 50% in stock Y. Year Stock X Stock
Consider the following information for two stocks.Assume that portfolio XY is 50% invested in stock X and 50% in stock Y.
YearStock XStock YPortfolio XY
201011%21%
201137%(38) %
2012(21) %48%
201326%16%
201413%24%
Find the portfolio average return and standard deviation.
Answers:
E.13.70% and 8.42%
My Question is how is the answer of 8.42% arrived at for standard deviation to the above problem? Can you show me the steps?
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