Question
Portfolio R offers an expected return of 12% with a standard deviation of 20%. Portfolio S has an expected return of 8% with a standard
Portfolio R offers an expected return of 12% with a standard deviation of 20%. Portfolio S has an expected return of 8% with a standard deviation of 10%. The correlation of the portfolios returns is 0.5.
Refer to the information above. What is the expected return of a new portfolio that is 60% invested in Portfolio R and 40% in Portfolio S?
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Basic Finance An Introduction To Financial Institutions, Investments, And Management
Authors: Herbert B. Mayo
12th Edition
1337691011, 978-1337691017
