Question: hneed help for an easy calculation method to understand the problem better. You have two stocks in your portfolio, A and B. Stock A has
hneed help for an easy calculation method to understand the problem better.
You have two stocks in your portfolio, A and B. Stock A has an expected return of 10% and volatility (measured in standard deviations) of 25%. Stock A has an expected return of 7% and volatility (measured in standard deviations) of 20%. Stock A and B have a correlation of 0.2. 45% of your portfolio is invested in A. What is the portfolio expected return and volatility (measured in standard deviations)? Return = 8.4%, Volatility = 23.1% Return = 9.0%, Volatility = 19.4% Return = 8.4%, Volatility = 17.2% = Return = 9.0%, Volatility = 21.4% = Return = 8.4%, Volatility = 21.4% =
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