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 | $39.65 | 6.00% | 19.00% |
| Duncan Inc. (B) | 22.00 | $50.54 | 8.00% | 20.00% |
The correlation between LBJ and Duncan is 0.50.
What is the expected return for the portfolio in the coming year?
What is the standard deviation of the portfolio?
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American Public School Finance
Authors: William A. Owings, Leslie S. Kaplan
1st Edition
0495807834, 9780495807834
