In the example we just examined, Stock A has a standard deviation of 40 percent per year
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In the example we just examined, Stock A has a standard deviation of 40 percent per year and Stock B has a standard deviation of 60 percent per year. Suppose now that the correlation between them is .35. Also suppose you put one-fourth of your money in Stock A. What is your portfolio standard deviation?
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If you put 14 or 25 in Stock A you must have 34 or 75 ...View the full answer
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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