The stocks have a correlation of 09 what is the expected


You have $10,000 to invest. You decide to invest $20,000 in Google and short sell $10,000 worth of Yahoo! Google's expected return is 15% with a volatility of 30% and Yahoo!'s expected return is 12% with a volatility of 25%. The stocks have a correlation of 0.9. What is the expected rate of return and volatility of the portfolio?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: The stocks have a correlation of 09 what is the expected
Reference No:- TGS01286322

Expected delivery within 24 Hours