Question
Your portfolio has 40% of its value invested in Tea Fund and the remainder invested in Uni Fund. Tea has a standard deviation of 25%,
Your portfolio has 40% of its value invested in Tea Fund and the remainder invested in Uni Fund. Tea has a standard deviation of 25%, while Uni has a standard deviation of 10%. If the correlation between the two funds is -0.1, what is the standard deviation of your portfolio?
options: 13.99% 15.47% 12.78% 11.14% 10.26%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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
Fixed Income Markets And Their Derivatives
Authors: Suresh Sundaresan
3rd Edition
0123850517, 978-0123704719
