Question
Suppose that there are only two stocks in the market and a risk free asset E(Ra)=18% , SD(Ra)=15% E(Rb)=12% , SD(Rb)=7%) COV(Ra,Rb)=0 Rf=5%, Supposed that
Suppose that there are only two stocks in the market and a risk free asset E(Ra)=18% , SD(Ra)=15% E(Rb)=12% , SD(Rb)=7%) COV(Ra,Rb)=0 Rf=5%, Supposed that you want to invest in a portfolio with E(Rp)=15%. a. Calculate the SD(Rp) b. Write down the portfolios weights for each one of the securities you decided to invest in.
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International Finance The Markets And Financial Management Of Multinational Business
Authors: Maurice D. Levi
3rd Edition
0070376875, 978-0070376878
