Question
You have $10,000 to invest. You decide to invest $20,000 in Tesla and short sell $10,000 worth of Apple. Teslas expected return is 15% with
You have $10,000 to invest. You decide to invest $20,000 in Tesla and short sell $10,000 worth of Apple. Teslas expected return is 15% with a standard deviation of 30% and Apples expected return is 12% with a standard deviation of 25%. The stocks have a correlation of 0.9.
What is the expected return and standard deviation of the portfolio?
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Pricing And Hedging Financial Derivatives A Guide For Practitioners
Authors: Leonardo Marroni, Irene Perdomo
1st Edition
1119953715, 978-1119953715
