Interaction component of total risk


Suppose you split your money between securities A and B from the table. What percentage of your portfolio variance comes from the interaction component of total risk?

Security

A B

E( R ) 12% 13%

σ2 .021 .029

Beta 1.10 1.20

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Interaction component of total risk
Reference No:- TGS049647

Expected delivery within 24 Hours