Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If you want to invest in a portfolio that consists from two assets, stock X as 70% from this investment and stock Z as 30%.

image text in transcribed
If you want to invest in a portfolio that consists from two assets, stock X as 70% from this investment and stock Z as 30%. The expected rate of return on share X is 15% and for Z is 9%, the standard deviation of stock X is 16% and stock Z is 7%, the correlation between the two shares is 0.9, find the following: 1- The portfolio expected rate of return. (5 marks) 2- The portfolio standard deviation STD (risk)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forex Trading

Authors: Paul Millis

1st Edition

979-8699265442

More Books

Students also viewed these Finance questions

Question

Write a short note on - JUDICIARY

Answered: 1 week ago

Question

Explain Promotion Mix.

Answered: 1 week ago

Question

Explain the promotional mix elements.

Answered: 1 week ago

Question

1. There are many social organisations around us?

Answered: 1 week ago