Question
Stock A's annual returns have a standard deviation of 45%. Stock B's annual returns have a standard deviation of 76%. The two stocks have a
Stock A's annual returns have a standard deviation of 45%. Stock B's annual returns have a standard deviation of 76%. The two stocks have a correlation of 0. Use calculus to find out what percentage of your money you should invest in Stock A in order to minimize the standard deviation of a portfolio of A and B.
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
18th Edition
126409762X, 9781264097623
