Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stock A has an expected return of 2% and a standard deviation of 8%, while stock B has an expected return of 1% and a

Stock A has an expected return of 2% and a standard deviation of 8%, while stock B has an expected return of 1% and a standard deviation of 5%. The correlation between Stock A and Stock B is 0.10. You decided to invest $5,000 in Stock A and $20,000 in Stock B. What is the portfolios expected return?

2.40%

1.20%

1.50%

5.60%

1.80%

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

Personal Finance

Authors: Vickie L Bajtelsmit

2nd Edition

111959247X, 9781119592471

More Books

Students also viewed these Finance questions

Question

2. I try to be as logical as possible

Answered: 1 week ago