Question: Here are the expected returns on two stocks: Probability 0.2 0.6 0.2 X -20% 20 40 Returns Y 10% 15 20 If you form

Here are the expected returns on two stocks: Probability 0.2 0.6 0.2 

Here are the expected returns on two stocks: Probability 0.2 0.6 0.2 X -20% 20 40 Returns Y 10% 15 20 If you form a 60-40 portfolio of the two stocks (60% of X and 40% of Y), what is the portfolio's standard deviation?

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To calculate the portfolios standard deviation we need to use the formula p wXX wYY 2wXwYXYXY w... View full answer

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