Stock A has an expected return of 13% and a standard deviation of 11%. Stock B has an expected return of 9% and a standard
Stock A has an expected return of 13% and a standard deviation of 11%. Stock B has an expected return of 9% and a standard deviation of 7%. The correlation between the returns of stock A and B is 0.30. If we combined stock A and B into a portfolio where the weight of stock A is 40% and the weight of stock B is 60%, what would be the expected return and standard deviation of this portfolio?
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Authors: Judith J. Baker, R.W. Baker, Neil R. Dworkin
5th Edition
1284118215, 978-1284118216
