Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

do in excel!! Suppose you have $50,000 that you would like to invest in two companies, Bethlehem Books and Allentown Audio. Bethlehem has a return

do in excel!!
image text in transcribed
Suppose you have $50,000 that you would like to invest in two companies, Bethlehem Books and Allentown Audio. Bethlehem has a return of 10% and standard deviation 15%, while Allentown has return of 15% with a standard deviation of 20%. The correlation coefficient between them is .5. Your portfolio should have a return of 12%. Find the standard deviation of this portfolio's returns. (Answer: 14.78\%)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Environmental And Sustainable Finance

Authors: Vikash Ramiah, Greg N. Gregoriou

1st Edition

012803615X, 978-0128036150

More Books

Students also viewed these Finance questions