Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You invest $4,000 in Tidepool Co., which has an expected return of 12% and a standard deviation of 15%, and $6,000 in Madfish, Inc, which
You invest $4,000 in Tidepool Co., which has an expected return of 12% and a standard deviation of 15%, and $6,000 in Madfish, Inc, which has an expected return of 20% and a standard deviation of 25%. The correlation of the two stocks is 0.7. 2. What is the expected return on your portfolio? A. 12.9% B. 15.7% C. 16.0% D. 16.8% E. 21.0% 3. What is the standard deviation of your portfolio? A. 12.92% B. 16.16% C. 19.67% D. 20.00% E. 21.00%
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