Question
You invest 62% of your money in Stock A and the rest in Stock B. The standard deviation of annual returns is 56% for Stock
You invest 62% of your money in Stock A and the rest in Stock B. The standard deviation of annual returns is 56% for Stock A and 54% for Stock B. The correlation between the two stocks is 0.6. What is the standard deviation of annual returns for the combination of the two stocks?
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Case Studies In Finance
Authors: Robert F. Bruner
4th Edition
0072338628, 978-0072338621
