Question
You are composing a two-stock portfolio consisting of 40 percent Stock Xand 60 percent Stock Y. Given the following information, find the standard deviation of
You are composing a two-stock portfolio consisting of 40 percent Stock Xand 60 percent Stock Y. Given the following information, find the standard deviation of this portfolio.
Company Beta Expected Return Variance Correlation Coefficient
X 1.42 8% 0.30 CORRX,Y= 0.3
Y 2.41 2% 0.16
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Personal Finance An Integrated Planning Approach
Authors: Ralph R Frasca
8th edition
136063039, 978-0136063032
