Question
Walmart has an expected return of 23% and a standard deviation of 14%. Microsoft has an expected return of 44% and a standard deviation of
Walmart has an expected return of 23% and a standard deviation of 14%. Microsoft has an expected return of 44% and a standard deviation of 24%. The correlation between Walmart and Microsoft is 0.7. What is the expected return of a portfolio that consists of a long position of $10,000 in Walmart and a short position of $2,000 in Microsoft?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
