Question
FinCorp Inc. is exploring the risk of different portfolio allocations between two stocks. Complete the following table. Case 1 Case 2 Weight in stock 1
FinCorp Inc. is exploring the risk of different portfolio allocations between two stocks. Complete the following table.
| Case 1 | Case 2 | |
|---|---|---|
| Weight in stock 1 | 35% | 40% |
| Weight in stock 2 | ||
| Standard deviation of stock 1 | 3% | |
| Standard deviation of stock 2 | 25% | 20% |
| Covariance between stocks 1 and 2 | 0.022 | |
| Correlation between stocks 1 and 2 | ||
| Portfolio variance | 0.027 | |
| Portfolio standard deviation | 26% |
Fill in the Blanks
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Internet Fraud Casebook
Authors: Joseph T. Wells
1st Edition
0470643633, 9780470643631
