Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have the following information for Stock A and Stock B: Expected rate of return: Stock A: .15 Stock B: .08 Standard deviation: Stock A:

You have the following information for Stock A and Stock B:

Expected rate of return:

Stock A: .15

Stock B: .08

Standard deviation:

Stock A: .60

Stock B: .40

Correlation between the two stocks: .5

If you invest $4,000 and $6,000 in Stock A and Stock B respectively, what is the standard deviation of the portfolio?

Select one:

a. .4157

b. .2932

c. .3794

d. .3210

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Management

Authors: Eugene F. Brigham, ‎ Joel F. Houston

11th edition

324422870, 324422873, 978-0324302691

More Books

Students also viewed these Finance questions

Question

How is China leading the way in green technology?

Answered: 1 week ago

Question

If the job involves a client load or caseload, what is it?

Answered: 1 week ago