Question
Jim has recently constructed a portfolio consisting of the following: 40% of his money in stock GXY. The expected return and standard deviation is 0.15
Jim has recently constructed a portfolio consisting of the following:
- 40% of his money in stock GXY. The expected return and standard deviation is 0.15 and 0.1 respectively.
- 40% of his money in stock ORE. The expected return and standard deviation is 0.13 and 0.12 respectively.
- 20% of his money in stock A2M. The expected return and standard deviation is 0.1 and 0.09 respectively.
The correlation coefficient for GXY & ORE is 0.8, the correlation coefficient for GXY & A2M is 0.3 and the correlation coefficient for ORE & A2M is 0.2
- Calculate the expected return of Jims portfolio
- Calculate the risk of Jims portfolio
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Gender And Finance
Authors: Ylva Baeckström
1st Edition
103205557X, 978-1032055572
