Question
Suppose you have invested in two stocks, A and B. The expected return and standard deviation of returns of each stock are as follows: Stock
Suppose you have invested in two stocks, A and B. The expected return and standard deviation of returns of each stock are as follows:
Stock A: expected return of 12% and standard deviation of 15% Stock B: expected return of 20% and standard deviation of 25%
You have allocated 60% of your portfolio to stock A and the remaining 40% to stock B. Calculate the expected return and standard deviation of your portfolio.
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Financial Analysis with Microsoft Excel
Authors: Timothy R. Mayes, Todd M. Shank
7th edition
1285432274, 978-1305535596, 1305535596, 978-1285432274
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