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) | 42.00 | $38.38 | 7.00% | 18.00% |
| Duncan Inc. (B) | 28.00 | $52.03 | 8.00% | 21.00% |
The correlation between LBJ and Duncan is 0.50.
What is the standard deviation of the portfolio?
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
3rd Edition
0073382426, 9780073382425
