Question
IBM AMZN E(R ) 0.09 0.13 Standard Deviation 0.12 0.22 Correlation 0.4 Suppose you have the above data on IBM and Amazon, compute the expected
| IBM | AMZN | |
| E(R ) | 0.09 | 0.13 |
| Standard Deviation | 0.12 | 0.22 |
| Correlation | 0.4 |
Suppose you have the above data on IBM and Amazon, compute the expected return and the standard deviation of an equally weighted portfolio invested in the two securities. Is there a diversification benefit?
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Finance And Financial Markets
Authors: Keith Pilbeam
3rd Edition
023023321X, 978-0230233218
