Calculate the rewards and risk of the portfolio using the expected rates of return, standard deviation,...
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Calculate the rewards and risk of the portfolio using the expected rates of return, standard deviation, correlation, and weights for two stocks in the portfolio below Stock A Stock B Weights E[R] 7% 12% Stock A 0.3 SD 25% 32% Stock B 0.7 Pa,b 0.5 Answer(s): What is the expected portfolio return? 10.50% What is the standard deviation (not variance) of the portfolio returns? What is the standard deviation (not variance) of the portfolio returns if the correlation dropped to 0? Calculate the rewards and risk of the portfolio using the expected rates of return, standard deviation, correlation, and weights for two stocks in the portfolio below Stock A Stock B Weights E[R] 7% 12% Stock A 0.3 SD 25% 32% Stock B 0.7 Pa,b 0.5 Answer(s): What is the expected portfolio return? 10.50% What is the standard deviation (not variance) of the portfolio returns? What is the standard deviation (not variance) of the portfolio returns if the correlation dropped to 0?
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Related Book For
Fundamentals of Financial Management
ISBN: 978-1305635937
Concise 9th Edition
Authors: Eugene F. Brigham
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