Expected return and standard deviation of a portofolio


Question:

Stock A has expected return of 12% and standard deviation of 40%. Stock B has an expected return of 18% and standard deviation of 60%. The correlation coeffecient between stocks A and B is 0.2.

What are the expected return and standard deviation of a portofolio invested 30% in stock A and 70% in stock B?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Expected return and standard deviation of a portofolio
Reference No:- TGS02077099

Now Priced at $20 (50% Discount)

Recommended (97%)

Rated (4.9/5)