Question: answer for stock A and C as well please Your client has $96,000 invested in stock A. She would like to build a two-stock portfolio
answer for stock A and C as well please
Your client has $96,000 invested in stock A. She would like to build a two-stock portfolio by investing another $96,000 in either stock B or C. She wants a portfolio with an expected return of at least 14.5% and as low a risk as possible, but the standard deviation must be no more than 40%. What do you advise her to do, and what will be the portfolio expected return and standard deviation? A B Expected Return 15% 14% 14% Standard Deviation 48% 40% 40% Correlation with A 1.00 0.17 0.31 IIIII The expected return of the portfolio with stock B is %. (Round to one decimal place.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
