Standard deviation of the resulting portfolio


Asset A has an expected return of 5% and a standard deviation of 5%. Asset B has an expected return of 15% and a standard deviation of 25%. If you would like to form a portfolio that has an expected return of 20% and you can only invest in these two assets, what are the portfolio weights for doing so? Suppose that the correlation coefficient between asset A and asset B is zero, what is the standard deviation of the resulting portfolio?

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Finance Basics: Standard deviation of the resulting portfolio
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