Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your investment portfolio has two funds in it. Fund A provides 15.5% return a year with risk of 23.5%. Fund B provides 8% a year

Your investment portfolio has two funds in it. Fund A provides 15.5% return a year with risk of 23.5%. Fund B provides 8% a year with a risk of 11.5%. The two funds has a correlation coefficient of 0.4. If you have $600,000 in fund A and $400,000 in fund B, what is your portfolio return and

risk?

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

Derivative Products And Pricing The Das Swaps And Financial Derivatives Library

Authors: Satyajit Das

1st Edition

0470821647, 9780470821640

More Books

Students also viewed these Finance questions

Question

What could be resons for denail of the request for the loan

Answered: 1 week ago