Question
Labyrinth Electronics stock has an expected return of 11% and a standard deviation of 17%. Flux Navigations has an expected return of 18% and a
Labyrinth Electronics stock has an expected return of 11% and a standard deviation of 17%. Flux Navigations has an expected return of 18% and a standard deviation of 40%. The correlation coefficient between Labyrinth and Flux is 0.4. What is the expected return, in percent, of a portfolio invested 40% in Labyrinth and 60% in Flux?
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Short Term Financial Management
Authors: John Zietlow, Matthew Hill, Terry Maness
5th Edition
1516512405, 9781516512409
