Question
Consider the following information ont he expected reutrns and standard deviation of Stocks A and B, as well as teh portfolio weights for the two
Consider the following information ont he expected reutrns and standard deviation of Stocks A and B, as well as teh portfolio weights for the two stocks in a two-stock portfolio
| Stock A | Stock B | |
| Expected Return | 20% | 50% |
| Standard Deviation | 30% | 60% |
| Portfolio Weight | 60% | 40% |
The correlation coefficient between the returns on the two stocks is 0.
What is teh standard deviation of the return on this portfolio?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
10th Edition
0201785676, 9780201785678
