The standard deviation of stock A is 20% and the standard deviation of stock B is 30%.
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Question:
The standard deviation of stock A is 20% and the standard deviation of stock B is 30%. Assume that you invest half of your portfolio in stock A and half of your portfolio in stock B. Calculate the standard deviation of the portfolio for two cases: a) the correlation coefficient equals 1 b) the correlation coefficient equals -1.
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