Stock A has an expected return of 12 and a standard deviation of 40 Stock B has an expected of 18 and a standard deviation of 60 The correlation coefficient between Stocks A and B is 0 2 What are the expected returns and the standard deviation of a portfolio invested 30 in Stock A and 70 in Stock B...

Computation of the Expected return on the portfolio Given information Stock A Expected return 0 ...

Stock A has an expected return of 12% and a standard deviation of 40%. Stock B has

Question:

Stock A has an of 12% and a standard deviation of 40%. Stock B has an expected of 18% and a standard deviation of 60%. The correlation coefficient between A and B is 0.2. What are the expected returns and the standard deviation of a invested 30% in Stock A and 70% in Stock B?

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...