Calculate the standard deviation of the portfolio Consider the data provided in the table below for a
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Calculate the standard deviation of the portfolio
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Consider the data provided in the table below for a portfolio of assets A and B. The portfolio weights and variances are given in the table. The variances are expressed in decimal form. For example, if the standard deviation is 50%, then the variance is 0.52 = 0.25. The correlation of returns of the two assets is negative -1.00. Portfolio Weights Variances Standard Deviation Asset A Asset B 0.75 0.25 0.1444 0.0625 0.38 0.25 Consider the data provided in the table below for a portfolio of assets A and B. The portfolio weights and variances are given in the table. The variances are expressed in decimal form. For example, if the standard deviation is 50%, then the variance is 0.52 = 0.25. The correlation of returns of the two assets is negative -1.00. Portfolio Weights Variances Standard Deviation Asset A Asset B 0.75 0.25 0.1444 0.0625 0.38 0.25
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Related Book For
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
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