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Given the following expectations for return, risk and correlation: E (r) a psb 0.22 0.31 -0.25 Portfolio S Portfolio B 0.1 0.06 Risk-free 0.055
Given the following expectations for return, risk and correlation: E (r) a psb 0.22 0.31 -0.25 Portfolio S Portfolio B 0.1 0.06 Risk-free 0.055 An optimal portfolio of S and B has been calculated to contain 0.5 stocks, i.e. portfolio S (out of a possible 100% or 1.0). What would be the standard deviation of the optimal portfolio from S and B? O 0.1706 O 0.1590 O 0.1774 O 0.1639 O 0.1503
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Answer ANSWER 1 a 1503 Portfolio standard deviation W1 2 x Std dev1 2 W2 2 x Std dev2 2 2 ...
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Understanding Basic Statistics
Authors: Charles Henry Brase, Corrinne Pellillo Brase
6th Edition
978-1133525097, 1133525091, 1111827028, 978-1133110316, 1133110312, 978-1111827021
