What is the expected return % and volatility of a portfolio when the expected return on stock
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Question:
What is the expected return % and volatility of a portfolio when the expected return on stock A is 17% and on stock B 12%. the standard deviations are 18% (A) and 30% (B). The correlation between earnings per share is 0.25. Use 40% weight for stock A and 60% for stock B.
Related Book For
Corporate Finance The Core
ISBN: 9781292158334
4th Global Edition
Authors: Jonathan Berk, Peter DeMarzo
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