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How do I calculate the Standard Deviation of Portfolio's Return? Portfolio has 2 assets - A & B Weight of Asset A - 20% Expected
How do I calculate the Standard Deviation of Portfolio's Return?
Portfolio has 2 assets - A & B
Weight of Asset A - 20%
Expected Return of Asset A - 5%
Weighted Average Return = 0.2 X 5% = 1%
Weight of Asset B - 80%
Expected Return of Asset B - 3%
Weighted Average Return = 0.8 X 3% = 2.4%
The portfolio return is 1% + 2.4% = 3.4%
How do I calculate the Standard Deviation of the above portfolio return?
Thank you very much.
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