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Consider the following two assets: Asset X Asset Y Beta 0.8400 1.1500 st.dev 0.2600 0.2400 weight 0.5000 Where the standard deviation of returns is expressed
Consider the following two assets:
Asset X | Asset Y | ||
Beta | 0.8400 | 1.1500 | |
st.dev | 0.2600 | 0.2400 | |
weight | 0.5000 |
Where the standard deviation of returns is expressed as a decimal. The standard deviation of the market is 0.0900 (in decimal form).
What is the total risk of the portfolio with the weights above?? Answer as a variance using decimal form (i.e. 0.1234)
Please dont round anything until the final step :)
thank you!
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