Question
Eric Poppovich invests money in two stocks for the upcoming year. His investment is shown below: STOCK: # of shares Price Per Share Expected Return
Eric Poppovich invests money in two stocks for the upcoming year. His investment is shown below:
| STOCK: | # of shares | Price Per Share | Expected Return | Standard Deviation |
|---|---|---|---|---|
| LBJ Corporation (A) | 46.00 | $39.96 | 7.00% | 18.00% |
| Duncan Inc. (B) | 30.00 | $53.35 | 10.00% | 22.00% |
The correlation between LBJ and Duncan is 0.50.
What is the standard deviation of the portfolio?
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CFIN
Authors: Scott Besley, Eugene Brigham
5th edition
1305661656, 9781305888036 , 978-1305666870
