Question
You form a portfolio by buying $10,675 of Microsoft stock, and $41,573 of Apple stock. Microsoft stock has a standard deviation of 37% and Apple
You form a portfolio by buying $10,675 of Microsoft stock, and $41,573 of Apple stock.
Microsoft stock has a standard deviation of 37% and Apple stock has a standard deviation of 40%, and they have a correlation of 0.95.
What is the standard deviationof your portfolio?
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Cases in Finance
Authors: Jim DeMello
3rd edition
1259330476, 1259330478, 9781259352652 , 978-1259330476
