Question
The expected return and standard deviation of a portfolio that is 30 percent invested in 3 Doors, Inc., and 70 percent invested in Down Co.
The expected return and standard deviation of a portfolio that is 30 percent invested in 3 Doors, Inc., and 70 percent invested in Down Co. are the following:
3 Doors, Inc. | Down Co. | |
Expected return, E(R) | 13% | 10% |
Standard deviation, sigma | 46 | 35 |
What is the standard deviation if the correlation is +1? 0? -1?
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Fundamentals of Investments, Valuation and Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
8th edition
1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697
