If she invests 30 of her funds in hidalgos and 70 in atrium


Kings Auto Supplies is considering investing in the common stock of Hidalgo's and Atrium. The following date are available for these two securities:

Hidalgo's Atrium
Expected return 0.12 0.16
Standard deviation of returns 0.08 0.20

If she invests 30% of her funds in Hidalgo's and 70% in Atrium, and if the correlation of returns between these securities is +0.65, what is the portfolio's expected return and standard deviation?

 

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Finance Basics: If she invests 30 of her funds in hidalgos and 70 in atrium
Reference No:- TGS0598658

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