Consider two risky assets that have returns variances of 0.0625 and 0.0324, respectively. The assets' standard deviations

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Consider two risky assets that have returns variances of 0.0625 and 0.0324, respectively. The assets' standard deviations of returns are then 25% and 1 8%, respectively. Calculate the variances and standard deviations of portfolio returns for an equal-weighted portfolio of the two assets when their correlation of returns is 1 0.5, 0, and -0.5.

Posted Date: May 20, 2024 02:05 AM

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Consider two risky assets that have returns variances of 0.0625 and 0.0324, respectively. The assets' standard deviations

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