Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please show work A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 17% while stock
Please show work
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 17% while stock B has a standard deviation of return of 10%. The correlation coefficient between the returns on A and B is 0.51. Stock A comprises 47% of the portfolio while stock B comprises the rest. What is the standard deviation of the return on this portfolio?
Enter answer in percents, to two decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started