Question
State Probability Return on Stock C Return on Stock D 1 30% 7% -9% 2 50% 11% 14% 3 20% -16% 26% You have a
State Probability Return on Stock C Return on Stock D 1 30% 7% -9% 2 50% 11% 14% 3 20% -16% 26% You have a portfolio invested 25% in Stock C and 75% in Stock D
(a) What is the expected return and standard deviation of this portfolio? (b) What is the correlation of Stock C and Stock D?
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Introductory Econometrics For Finance
Authors: Chris Brooks
3rd Edition
1107661455, 9781107661455
