Question
Your investment portfolio has two funds in it. Fund A provides 13% return a year with risk of 19%. Fund B provides 8% a year
Your investment portfolio has two funds in it. Fund A provides 13% return a year with risk of 19%. Fund B provides 8% a year with risk of 11%. The two funds has a correlation coefficient of 0.4. If you have $300,000 in fund A and $200,000 infund B, what is your portfolio return and risk?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the portfolio return and risk we can use the following formulas Portfolio Return Rp wA ...
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
Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
