Calculate the standard deviation of a portfolio consisting of 20% invested in A Inc. with E(r)=8% and

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Calculate the standard deviation of a portfolio consisting of 20% invested in A Inc. with E(r)=8% and Stdev= 40% and the rest invested in B Corp. with E(r)=12% and Stdev=20%, if the two stocks correlation is 0.

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Fundamentals of Financial Management

ISBN: 978-0324664553

Concise 6th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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Posted Date: Jul 06, 2023 08:55 AM

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Calculate the standard deviation of a portfolio consisting of 20% invested in A Inc. with E(r)=8% and

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Step 1 Calculate the weighted average expected return of the portfolio The weight of A Inc is 20 so ... View the full answer

Fundamentals of Financial Management

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