Question
James Roderick has invested 40% of his money in stock A and the remainder in stock B. James accesses their prospects as follows: A B
James Roderick has invested 40% of his money in stock A and the remainder in stock B. James accesses their prospects as follows:
A B
Expected Return (%) 11 13
Standard Deviation (%) 17 21
Correlation between Returns 0.43
- (3 points) What is the expected return of this portfolio?
- (6 points) What is the standard deviation of this portfolio?
- (4 points) How would the portfolio standard deviation change if the correlation between returns was 0?
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Re Imagining Offshore Finance
Authors: Christopher M. Bruner
1st Edition
0190466871, 978-0190466879
