Question
Mr. Jones has a 2-stock portfolio with a total value of $510,000.$185,000 is invested in Stock A and the remainder is invested in Stock B.
Mr. Jones has a 2-stock portfolio with a total value of $510,000.$185,000 is invested in Stock A and the remainder is invested in Stock B. If standard deviation of Stock A is 17.70%, Stock B is 10.45%, and correlation between Stock A and Stock B is 0.60, what would be the expected risk on Mr. Jones portfolio (standard deviation of the portfolio return)?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
