Question
Example: You put 70% of your money in a stock portfolio that has an expected return of 15% and a standard deviation of 25%. You
Example: You put 70% of your money in a stock portfolio that has an expected return of 15% and a standard deviation of 25%. You put the rest of your money in a risky bond portfolio that has an expected return of 5% and a standard deviation of 10%. The stock and bond portfolios have a correlation of 0.65. What is the expected return and risk of your portfolio?
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International Financial Reporting And Analysis
Authors: David Alexander, Ann Jorissen, Martin Hoogendoorn
8th Edition
978-1473766853, 1473766850
