The covariance of returns between Share A and Share B is 0.0243. Share A has exhibited historical
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Question:
The covariance of returns between Share A and Share B is 0.0243. Share A has exhibited historical returns with a mean of 12% and standard deviation of 18%. Over the same period, Share B had average returns of 21% with a standard deviation of 27%.
Calculate the expected return and standard deviation of a portfolio consisting of $50,000 in Share A and $100,000 in Share B.
Related Book For
Managerial Economics and Organizational Architecture
ISBN: 978-0073375823
5th edition
Authors: James Brickley, Jerold Zimmerman, Clifford W. Smith Jr
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