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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) | 40.00 | $37.40 | 6.00% | 20.00% |
Duncan Inc. (B) | 28.00 | $50.31 | 8.00% | 24.00% |
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
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) | 40.00 | $37.40 | 6.00% | 20.00% |
Duncan Inc. (B) | 28.00 | $50.31 | 8.00% | 24.00% |
The correlation between LBJ and Duncan is 0.50.
What is the standard deviation of the portfolio
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