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Josie Starks has a two-stock portfolio with the following characteristics: Stock Franklin Co. Rauch, Inc. Portfolio weight 0.30 0.70 Expected return 11.0% 13.0% Standard deviation
Josie Starks has a two-stock portfolio with the following characteristics:
| Stock | Franklin Co. | Rauch, Inc. |
| Portfolio weight | 0.30 | 0.70 |
| Expected return | 11.0% | 13.0% |
| Standard deviation of return | 20.0% | 28.0% |
| The correlation between the returns for Franklin and Rauch is 0.50. | ||
What is the expected portfolio standard deviation?
| A. | 23.6% | |
| B. | 23.2% | |
| C. | 24.6% | |
| D. | 24.2% |
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Bond Markets Analysis And Strategies
Authors: Frank J. Fabozzi
6th Edition
0131986430, 9780131986435
