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Your portfolio consists of two securities: Transcomm and Mid Cap. The expected return for Transcomm is 14.6 percent, while for MidCap it is 4.6 percent.
Your portfolio consists of two securities: Transcomm and Mid Cap. The expected return for Transcomm is 14.6 percent, while for MidCap it is 4.6 percent. The standard deviation is 5.6 percent for Transcomm and 19.6 percent for Mid Cap. Assume 30 percent of the portfolio is invested in Transcomm. Calculate the portfolio standard deviation if the correlation between the stocks is 0.80. (Round intermediate calculations to 6 decimal places, e.g. 0.251254 and the final answer to 2 decimal places, e.g. 15.25%.) Portfolio standard deviation % Calculate the portfolio standard deviation if the correlation between the stocks is -0.80. (Round intermediate calculations to 6 decimal places, e.g. 0.251254 and the final answer to 2 decimal places, e.g. 15.25%.) Portfolio standard deviation %
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