Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The return on stock 1 has a standard deviation of 3 7 % and the return on stock 2 has a standard deviation of 1

The return on stock 1 has a standard deviation of 37% and the return on stock 2 has a standard deviation of 17%. Their correlation is -0.26.
If you invest 70% in stock 1 and 30% in stock 2, what is the variance of the portfolio?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Oxford Handbook Of Pricing Management

Authors: Ozalp Ozer, Robert Phillips

1st Edition

0199543178, 978-0199543175

More Books

Students also viewed these Finance questions