suppose you have 50000 that you want to invest in


Suppose you have $50,000 that you want to invest in two companies, Bethlehem Books and Allentown Audio. Bethlehem has a return of 10% and standard deviation 15%, while Allentown has return of 15% with a standard deviation of 20%. The correlation coefficient between them is .5. Your portfolio should have a return of 12%. Find the standard deviation of this portfolio''s returns.

Request for Solution File

Ask an Expert for Answer!!
Other Engineering: suppose you have 50000 that you want to invest in
Reference No:- TGS0155425

Expected delivery within 24 Hours