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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.)
3 Doors, Inc. | Down Co. | |||||
Expected return, E(R) | 19 | % | 14 | % | ||
Standard deviation, | 49 | 51 | ||||
Correlation | .34 | |||||
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