Solved: If you invest 4000 and 6000 in stock a and stock b, Finance Basics

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If you invest 4000 and 6000 in stock a and stock b

You have the following information for Stock A and Stock B:

Expected rate of return:

Stock A: .15

Stock B: .08

Standard deviation:

Stock A: .60

Stock B: .40

Correlation between the two stocks: .5

If you invest $4,000 and $6,000 in Stock A and Stock B respectively, what is the standard deviation of the portfolio?

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Finance Basics: If you invest 4000 and 6000 in stock a and stock b

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Finance Basics: If you invest 4000 and 6000 in stock a and stock b

Reference No:- TGS02709976

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