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Here are the expected returns on two stocks: Returns Probablity X Y 0.1 -20% 10% 0.8 20 15 0.1 40 20 If you form a
Here are the expected returns on two stocks:
| Returns | ||
| Probablity | X | Y |
| 0.1 | -20% | 10% |
| 0.8 | 20 | 15 |
| 0.1 | 40 | 20 |
If you form a 50-50 portfolio of the two stocks, what is the portfolio's standard deviation?
a. 8.1%
b. 10.5%
c. 13.4%
d. 16.5%
e. 20.0%
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The Handbook Of Portfolio Mathematics
Authors: Vince
1st Edition
0471757683, 978-0471757689
