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Stock A has an expected return of 0.1 and a standard deviation of 0.5. Stock B has an expected return of 0.2 and a
Stock A has an expected return of 0.1 and a standard deviation of 0.5. Stock B has an expected return of 0.2 and a standard deviation of 0.6. The correlation coefficient is 0.5. 1. What is the expected return of a portfolio with 70% Stock A and 30% Stock B? 2. What is variance of the portfolio with the weights given above?
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To solve these questions we can use the following formulas for a twoasset portfolio 1 E...
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
