Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stock A has a standard deviation of 15 percent per year and stock B has a standard deviation of 21 percent per year. The correlation

Stock A has a standard deviation of 15 percent per year and stock B has a standard deviation of 21 percent per year. The correlation between stock A and stock B is .32. You have a portfolio of these two stocks wherein stock B has a portfolio weight of 70 percent. What is your portfolio standard deviation?

15.87 percent

16.69 percent

17.91 percent

18.45 percent

19.03 percent

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

More Books

Students also viewed these Finance questions

Question

=+2. What is the difference between afferent and efferent nerves?

Answered: 1 week ago

Question

Write a letter asking them to refund your $1,500 down payment.

Answered: 1 week ago