Question
The expected return of Skysong is 18.5 percent, and the expected return of Concord is 23.5 percent. Their standard deviations are 12.5 percent and 20.5
The expected return of Skysong is 18.5 percent, and the expected return of Concord is 23.5 percent. Their standard deviations are 12.5 percent and 20.5 percent, respectively. If a portfolio is composed of 30 percent Skysong and the remainder Concord.
Calculate the expected return and the standard deviation of the portfolio, given a correlation coefficient between Skysong and Concord of 0.35.(Round intermediate calculations to 4 decimal places, e.g. 31.2125 and final answers to 2 decimal places, e.g. 15.25%.)
The expected return= %
Standard deviation of portfolio= %
Calculate the standard deviation if the correlation coefficient is 0.35.(Do not round intermediate calculations. Round answer to 2 decimal places, e.g. 15.25%.)
Standard deviation of portfolio= %
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