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You construct a portfolio containing two stocks, X and Y. You invest 90% of your funds in Stock X and the remainder in Stock Y.
You construct a portfolio containing two stocks, X and Y. You invest 90% of your funds in Stock X and the remainder in Stock Y. Stock X has an expected return of 8.0% and has a standard deviation of 13%. Stock Y has an expected return of 11.5% and has a standard deviation of 19%. The covariance between the two stocks is -0.01729. What is the standard deviation of the returns on the portfolio
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Cases In Healthcare Finance
Authors: Louis C. Gapenski
2nd Edition
1567932002, 978-1567932003
