Question
What is the standard deviation of Minnie's portfolio consisting of $30,000 in Twitter and $70,000 in Walmart? Given that stdev (Twitter) =20%; stdev (Walmart) =9%;
What is the standard deviation of Minnie's portfolio consisting of $30,000 in Twitter and $70,000 in Walmart?
Given that stdev (Twitter) =20%; stdev (Walmart) =9%; corr (Twitter,Walmart) = -0.45.
a) 6.46%
b) 5.18%
c) 10.47%
d) 8.11%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Value at Risk The New Benchmark for Managing Financial Risk
Authors: Philippe Jorion
3rd edition
0070700427, 71464956, 978-0071464956
