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Stock #1 has a standard deviation of 55 percent. Stock #2 has a standard deviation of 75 percent. You invest 48 percent of your
Stock #1 has a standard deviation of 55 percent. Stock #2 has a standard deviation of 75 percent. You invest 48 percent of your money in Stock #1 and the rest in Stock #2. If there were NO benefit to diversifying your investment between these two stocks, what would be the standard deviation of the portfolio? Write your answer as a decimal out to three places (write 6.5% as .065, for example). Answer:
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
