The stock of Koch Brickyard, Inc., is expected to return 14 percent with a standard deviation of

Question:

The stock of Koch Brickyard, Inc., is expected to return 14 percent with a standard deviation of 5 percent. Uptown Potbelly Stove Works’ stock is expected to return 16 percent with a standard deviation of 9 percent.
a. If you invest 30 percent of your funds in Koch stock and 70 percent in Uptown stock, what is the on your What is the expected risk of this if the returns for the two have?
i. A perfect positive correlation (+1.0)?
ii. A slightly negative correlation (–0.2)?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... 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...