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Problem 11-13 More Portfolio Variance (LO4, CFA3) The expected return and standard deviation of a portfolio that is 30 percent invested in 3 Doors, Inc.,
Problem 11-13 More Portfolio Variance (LO4, CFA3)
The expected return and standard deviation of a portfolio that is 30 percent invested in 3 Doors, Inc., and 70 percent invested in Down Co. are the following:
3 Doors, Inc. | Down Co. | |||||
Expected return, E(R) | 13 | % | 12 | % | ||
Standard deviation, | 56 | 36 | ||||
What is the standard deviation if the correlation is +1? 0? 1? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. )
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