Question
You can form a portfolio of two assets, A and B, whose returns have the following characteristics: Stock Expected Return, % Standard Deviation, % Correlation
You can form a portfolio of two assets, A and B, whose returns have the following characteristics:
| Stock | Expected Return, % | Standard Deviation, % | Correlation |
| A | 16 | 11 | 0.5 |
| B | 10 | 18 |
If you demand an expected return of 13%, what is the portfolios standard deviation? Report your answer in decimal form
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Physics
Authors: James S. Walker
5th edition
978-0133498493, 9780321909107, 133498492, 0321909100, 978-0321976444
