Question
The stock of a restaurant franchise enterprise has a standard deviation of return of 10 percent, while the stock of a grocery store chain has
The stock of a restaurant franchise enterprise has a standard deviation of return of 10 percent, while the stock of a grocery store chain has a standard deviation of return of 20 percent. The correlation coefficient between the two stocks is 0.5. If you invest 60 percent of your funds in the restaurant chain stock and 40 percent in the grocery store stock, what is the standard deviation of your portfolio?
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
1292016922, 978-1292016924
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