Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

thx The expected return of Riverbed is 17.8 percent, and the expected return of Marin is 22.4 percent. Their standard deviations are 11.1 percent and

image text in transcribedthx

The expected return of Riverbed is 17.8 percent, and the expected return of Marin is 22.4 percent. Their standard deviations are 11.1 percent and 19.6 percent, respectively. If a portfolio is composed of 40 percent Riverbed and the remainder Marin, calculate the expected return and the standard deviation of the portfolio, given a correlation coefficient between Riverbed and Marin 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 %

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

Nft For Beginners

Authors: Maria Medina

1st Edition

979-8851572357

More Books

Students also viewed these Finance questions