Calculate the Standard Deviation of a portfolio consisting of 25% stock A and 75% stock B. Stock
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Question:
Calculate the Standard Deviation of a portfolio consisting of 25% stock A and 75% stock B.
Stock | SD | Corr A,B = 0.24 |
A | 30% | |
B | 50% |
NOTE: the correct answer is 39.97%, but I am more interested in the correct formula and process of solving the question. Please show all work and calculations, Thank you!
Related Book For
Introduction to Corporate Finance
ISBN: 978-0324657937
2nd edition
Authors: Scott B. Smart, William L Megginson
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