Question
You have a three-stock portfolio. Stock A has an expected return of 13 percent and a standard deviation of 38 percent, Stock B has an
You have a three-stock portfolio. Stock A has an expected return of 13 percent and a standard deviation of 38 percent, Stock B has an expected return of 17 percent and a standard deviation of 43 percent, and Stock C has an expected return of 17 percent and a standard deviation of 43 percent. The correlation between Stocks A and B is 0.30, between Stocks A and C is 0.20, and between Stocks B and C is 0.05. Your portfolio consists of 38 percent Stock A, 25 percent Stock B, and 37 percent Stock C. Calculate the expected return and standard deviation of your portfolio.
(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
I have the expected return, just need the standard deviation.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started