If you want to invest in a portfolio that consists from two assets, stock X as 70%
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Question:
If you want to invest in a portfolio that consists from two assets, stock X as 70% from this investment and stock Z as 30%. The expected rate of return on share X is 15% and for Z is 9%, the standard deviation of stock X is 16% and stock Z is 7%, the correlation between the two shares is 0.9, find the portfolio expected rate of return.
Related Book For
Fundamentals of Financial Management
ISBN: 978-1337395250
15th edition
Authors: Eugene F. Brigham, Joel F. Houston
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