Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stock A has an expected return of 13% and a standard deviation of 45%. Stock B has an expected return of 16% and a standard

Stock A has an expected return of 13% and a standard deviation of 45%. Stock B has an expected return of 16% and a standard deviation of 60%. The correlation coefficient between Stocks A and B is 0.2. What are the expected return and standard deviation of a portfolio invested 30% in Stock A and 70% in Stock B?

Do not round intermediate calculations. Round your answers to two decimal places.

What is the expected return of a portfolio invested 30% in Stock A and 70% in Stock B?

Answer 1Choose...51.42%13.87%46.62%15.10%

What is the standard deviation of a portfolio invested 30% in Stock A and 70% in Stock B?

Answer 2Choose...51.42%13.87%46.62%15.10%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions