Stock a has an expected return of 12 and a standard


Two-Asset Portfolio

Stock A has an expected return of 12% and a standard deviation of 40%. Stock B has an expected return of 17% and a standard deviation of 60%. The correlation coefficient between Stocks A and B is 0.2.

What is the expected return of a portfolio invested 25% in Stock A and 75% in Stock B? Round your answer to two decimal places.

______ %

What is the standard deviation of a portfolio invested 25% in Stock A and 75% in Stock B? Round your answer to two decimal places.

______ %

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Financial Management: Stock a has an expected return of 12 and a standard
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