Question
MSFT has an expected return E(x) of 0.24 and a standard deviation sigma of 0.23 WMT has an expected return E(x) of 0.11 and a
MSFT has an expected return E(x) of 0.24 and a standard deviation sigma of 0.23
WMT has an expected return E(x) of 0.11 and a standard deviation sigma of 0.15
The correlation between MSFT and WMT is 0.55
Compute the standard deviation of the portfolio if you invest a fraction 0.53 into MSFT and the rest into WMT.
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Personal Finance
Authors: E. Thomas Garman, Raymond Forgue
9th Edition
0618938737, 978-0618938735
