Question: Answer the following TWO questions based on information provided below: You are investing for your retirement. You put 60% into stock A, with expected return
Answer the following TWO questions based on information provided below: You are investing for your retirement. You put 60% into stock A, with expected return of 12%, and standard deviation of 20%. The rest are invested in stock B, with expected return of 10%, and standard deviation of 15%. The correlation coefficient between Stock A and Stock B is 0.5 . 17. What is the expected return of your retirement portfolio? a) 10.8% b) 11.2% c) 17% d) 18% 18. What is the standard deviation of your retirement portfolio? a) 2.52% b) 15.87% c) 18% d) Cannot be determined
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