Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stock 1 has an expected return of 6% and a standard deviation of 29%. Stock 2 has an expected return of 11% and a standard

Stock 1 has an expected return of 6% and a standard deviation of 29%. Stock 2 has an expected return of 11% and a standard deviation of 24%. Their correlation is -0.1.

You invest 30% in stock 1 and 70% in stock 2.

Part 1

What is the standard deviation of the portfolio?

_________

Part 2

What is the expected return of the portfolio?

_____________

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

21 Lessons What I Ve Learned From Falling Down The Bitcoin Rabbit Hole

Authors: Gigi

1st Edition

1697526349, 978-1697526349

More Books

Students also viewed these Finance questions

Question

Write a short "employee Code of Conduct".

Answered: 1 week ago