Question: I'm not sure how to compute the bottom half. Please show the exact formula you used. CALCULATING THE RISK OF A TWO-ASSET PORTFOLIO An investor

I'm not sure how to compute the bottom half. Please show

I'm not sure how to compute the bottom half. Please show the exact formula you used.

the exact formula you used. CALCULATING THE RISK OF A TWO-ASSET PORTFOLIO

CALCULATING THE RISK OF A TWO-ASSET PORTFOLIO An investor puts 60% of his investment into SPY, an S&P500 index ETF, and the remaining 40% into AGG, a U.S. Core Bond index ETF, creating a balanced portfolio. The standard deviation of SPY is 10.7%, while the standard deviation on AGG is 2.98%. Find the standard deviation of this portfolio if the correlation between the two instruments is -0.10. Asset Weight Expected return Standard deviation SPY 50% 8.60% 10.70% AGG 40% 3.82% 2.98% Correlation -0.1 Portfolio variance 0.004110674 Portfolio standard deviation 6.41% Expected portfolio return 6.69% Weight of CSCO Portfolio standard deviation Portfolio expected return 0% 5% 10% Portfolio Expected Return and Standard Deviation 15% 120.00% 20% 25% 100.00% 30% 35% 40% 80.00% 45% 50% 55% 60% Portfolio expected return 60.00% 40.00% 65% 70% 20.00% 75% 80% 0.00% 85% 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00% 90% Portfolio standard deviation 95% 100%

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