If the correlation of returns between the two securities is 0.15, the expected standard deviation of an

Question:

If the correlation of returns between the two securities is –0.15, the expected standard deviation of an equal-weighted portfolio is closest to:

A. 13.04%.

B. 13.60%.

C. 13.87%.

Use the following data to answer Question.
A portfolio manager creates the following portfolio: image text in transcribed

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Related Book For answer-question

Investments Principles Of Portfolio And Equity Analysis

ISBN: 9780470915806

1st Edition

Authors: Michael McMillan, Jerald E. Pinto, Wendy L. Pirie, Gerhard Van De Venter, Lawrence E. Kochard

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Question Posted: Mar 21, 2024 07:00 AM

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If the correlation of returns between the two securities is 0.15, the expected standard deviation of an

Question:

Security Expected Annual Return Expected Standard Deviation 1 2 16% 20% 12% 20%

Step by Step Answer:

Investments Principles Of Portfolio And Equity Analysis

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