Debt has expected return of 8% and standard deviation of 12%. Equity has expected return of 13% and standard deviation of 20%. The covariance between debt and equity is 0.0072. You have a portfolio that invests equally in debt and equity. What is the standard deviation of your portfolios?

Answer rating: 100% (QA)

Solution To calculate the standard deviation of the portfolio we need to ca... View the full answer