Question
w44) Suppose we obtain the following data in dollar terms: Stock market Return (mean) Risk (SD) United States 1.41% per month 3.74% United Kingdom 1.27%
w44) Suppose we obtain the following data in dollar terms:
| Stock market | Return (mean) | Risk (SD) |
| United States | 1.41% per month | 3.74% |
| United Kingdom | 1.27% per month | 5.21% |
The correlation coefficient between the two markets is 0.33. Suppose that you invest equally, i.e., 50% each, in the two markets. Determine the standard deviation risk of the resulting international portfolio (X.XX%)
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Matlab An Introduction with Applications
Authors: Amos Gilat
5th edition
1118629868, 978-1118801802, 1118801806, 978-1118629864
