Question: 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
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 0.5^2 = 0.25. The correlation of returns of the two assets is 0.76. What is the standard deviation of the portfolio?
| Asset A | Asset B | |
| Portfolio Weights | 0.73 | 0.27 |
| Variances | 0.1521 | 0.3721 |
| Standard Deviation | 0.39 | 0.61 |
What is the standard deviation of the portfolio?
(Enter your answer in decimal form. Round to four decimal places)
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