Question
You have two assets to choose from for your portfolio: A and B. You choose 25% A and 75% B. The statistics of the two
You have two assets to choose from for your portfolio: A and B. You choose 25% A and 75% B. The statistics of the two assets are: E(rA ) = 7%, E(rB ) = 12% 2A = 0.0016, 2B = 0.0049 Compute the expected return and variance of your portfolio under each of the following assumptions: 1. AB = 0.5 2. AB = 0.0 3. AB = -0.5
- You have two assets to choose from for your portfolio: A and B. You choose 25%A and 75%B. The statistics of the two assets are: - E(rA)=7%,E(rB)=12% - A2=0.0016,B2=0.0049 - Compute the expected return and variance of your portfolio under each of the following assumptions: - 1. AB=0.5 - 2. AB=0.0 - 3. AB=0.5
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The Evolution Of Finance
Authors: Barbara Guth
1st Edition
1633377261, 978-1633377264
