Question: 60 pts Question 6 Your current portfolio has a value of $17.600 and a volatility of 0.2%. You now invest an additional $4,000 into a
60 pts Question 6 Your current portfolio has a value of $17.600 and a volatility of 0.2%. You now invest an additional $4,000 into a stock that has a volatility of 0.2% and a correlation of 0.72 with your portfolio. The volatility of the new portfolio after adding the new stock will be? (Give your answer as a percentage with 2 decimals, eg, if the answer is 0.0345224 (or 3.45224%).enter 3.45 as your answer.) D Question 7 60 pts You will build a portfolio with 2 different funds. Fund A has an expected return of 18% and a volatility of 17%. Fund B has an expected return of 16% and a volatility of 33%. The correlation between the two funds is -0.36. If you put 68% in Fund A, and the rest of the complete portfolio in Fund B, what will be volatility of the complete portfolio? (Give your answer as a percentage with 2 decimals, e.g. If the answer is 0.0345224 (or 3.45224%), enter 3.45 as your answer)
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