Answered step by step
Verified Expert Solution
Question
1 Approved Answer
correct answer? You construct a portfolio containing two stocks, X and Y You invest 60% of your funds in Stock X and the remainder in
correct answer?
You construct a portfolio containing two stocks, X and Y You invest 60% of your funds in Stock X and the remainder in Stock Stock X has an expected return of 70% and has a standard deviation of 13%. Stock Y has an expected return of 12.7% and has a standard deviation of 19% The correlation coefficient between the two stocks is 0,8 What is the variance of the returns on the portfolio? Select one a. 0.021345 b. 0.021540 c. 0,021651 d 0021880Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started