Question
The annualized performance, in U.S. dollars, of the U.S. and European stock indices are: ReturnUS ? 10% US ? 16% Returneurope ? 11% europe ?18%
The annualized performance, in U.S. dollars, of the U.S. and European stock indices are:
ReturnUS ? 10% US ? 16% Returneurope ? 11% europe ?18% Correlation ? 0.60
a. What would be the return and risk of a portfolio invested half in the U.S. market and half in the European index? b. b. What if the correlation increases to 0.8?
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Management Of Islamic Finance
Authors: M. Kabir Hassan, Mamunur Rashid
1st Edition
1787564045, 978-1787564046
