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Use the following information to calculate the expected return and standard deviation of a portfolio that is 50 percent invested in 3 Doors, Inc., and
Use the following information to calculate the expected return and standard deviation of a portfolio that is 50 percent invested in 3 Doors, Inc., and 50 percent invested in Down Co.: (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) |
3 Doors, Inc. | Down Co. | |||||||||||
Expected return, E(R) | 14 | % | 11 | % | ||||||||
Standard deviation, | 34 | 36 | ||||||||||
Correlation | .19 | |||||||||||
Expected return | % |
Standard deviation | % |
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