Question
The standard deviations of Stock (K) and Stock (L) are 10% and 40%, respectively. The correlation between these two stocks is 54%. What is the
The standard deviations of Stock (K) and Stock (L) are 10% and 40%, respectively. The correlation between these two stocks is 54%. What is the APPROXIMATE standard deviation of a portfolio if we invest 40% for Stock K and 60% for Stock L?
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To calculate the approximate standard deviation of a portfolio we can use the followin...
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
