The expected return of ABC is 18 percent, and the expected return of DEF is 23 percent Their standard deviations are 12 percent and 20 percent, respectively If a portfolio is composed of 35 percent ABC and the remainder DEF, calculate the expected return and the standard deviation of the portfolio,...

ERp 3518 6523 2125 Standard deviation of portfolio ...

The expected return of ABC is 18 percent, and the expected return of DEF is 23 percent.

Question:

The of ABC is 18 percent, and the of DEF is 23 percent. Their standard deviations are 12 percent and 20 percent, respectively. If a is composed of 35 percent ABC and the remainder DEF, calculate the and the standard deviation of the given a correlation coefficient between ABC and DEF of 0.35. Calculate the standard deviation if the correlation coefficient is −0.35.

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...