If the correlation is 0 46 what is the expected return and standard deviation of a portfolio of 70 percent of share A and 30 percent of share B Shares A and B have the following returns 2 3 5 Share A 0 10 0 07 0 15 0 05 0 08 Share B 0 06 0 02 0 05 0 01 0 02 Shares A and B have the following returns...

ANSWER To calculate the expected return of a portfolio we need to calculate the weighted average of ...

If the correlation is 0.46 what is the expected return and standard deviation of a portfolio of

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If the correlation is 0.46 what is the expected return and standard deviation of a portfolio of 70 percent of share A and 30 percent of share B?

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Corporate Finance Core Principles And Applications

ISBN: 9781260571127

6th Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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Posted Date: May 03, 2023 06:21 AM

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If the correlation is 0.46 what is the expected return and standard deviation of a portfolio of

Question:

Shares A and B have the following returns. 2 3 5 Share A 0.10 0.07 0.15 -0.05 0.08 Share B 0.06 0.02 0.05 0.01 -0.02 Shares A and B have the following returns. 2 3 5 Share A 0.10 0.07 0.15 -0.05 0.08 Share B 0.06 0.02 0.05 0.01 -0.02

Expert Answer:

ANSWER To calculate the expected return of a portfolio we need to calculate the weighted average of ... View the full answer

Corporate Finance Core Principles And Applications

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