Stock A has an expected return of 0.1 and a standard deviation of 0.5. Stock B...
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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 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? 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... View the full answer
Related Book For
Financial management theory and practice
ISBN: 978-1439078099
13th edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
Posted Date:
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