Question
You are considering two assets with the following characteristics. E(R1) = 0:15 E(1) = 0:10 w1 = 0:5 E(R2)) = 0:20 E(2) = 0:20 w2
You are considering two assets with the following characteristics.
E(R1) = 0:15 E(1) = 0:10 w1 = 0:5
E(R2)) = 0:20 E(2) = 0:20 w2 = 0:5
Compute the mean and standard deviation of two portfolios if r1,2 = 0.40 and 0.60, respectively. Plot the two portfolios on a riskreturn graph and briefly explain the results.
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The New Microfinance Handbook A Financial Market System Perspective
Authors: Joanna Ledgerwood, Julie Earne, Candace Nelson
1st Edition
0821389270, 978-0821389270
