Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Security A has an expected return of 8 percent with a standard deviation of 1.5 percent Security B has an expected return of 12 percent
Security A has an expected return of 8 percent with a standard deviation of 1.5 percent Security B has an expected return of 12 percent with a standard deviation of 24 percent. The two securities have a correlation coefficient of 0.20. If you invest $43216 funds in Security A and $432161 in Security B. calculate the expected return and standard deviation of the portfolio?
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