Question
Find the E[r] and standard deviation of a portfolio invested 50% in Stock A and the rest in Stock B: A B E[r] 12% 6%
Find the E[r] and standard deviation of a portfolio invested 50% in Stock A and the rest in Stock B:
A B
E[r] 12% 6%
Std Dev 34% 18%
rho o.3500
the standard deviation of the portfolio is:
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
