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Here are returns and standard deviations for four investments. Return Standard Deviation Treasury bills 5.0% 0% Stock P 11.5 16 Stock Q 14.5 28 Stock
Here are returns and standard deviations for four investments. |
Return | Standard Deviation | |
Treasury bills | 5.0% | 0% |
Stock P | 11.5 | 16 |
Stock Q | 14.5 | 28 |
Stock R | 24.0 | 27 |
Calculate the standard deviations of the following portfolios. |
a. | 50% in Treasury bills, 50% in stock P. (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
Standard deviation | % |
b. | 50% each in Q and R, assuming the shares have: (Do not round intermediate calculations. Round your answers to 1 decimal place.) |
Standard Deviation | |
Perfect positive correlation | % |
Perfect negative correlation | % |
No correlation | % |
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