Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You put 70% of your money in a stock portfolio that has an expected return of 11.75% and a standard deviation of 28%. You put

You put 70% of your money in a stock portfolio that has an expected return of 11.75% and a standard deviation of 28%. You put the rest of you money in a risky bond portfolio that has an expected return of 2.65% and a standard deviation of 12%. The stock and bond portfolio have a correlation 0.33. What is the standard deviation of the resulting portfolio? Enter your answer rounded to two decimal places.

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

Foundations Of Financial Management

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

11th Canadian Edition

1259024970, 978-1259265921

More Books

Students also viewed these Finance questions