Question: Please also help me answer: 1. Standard deviation of the portfolio with stock B is __% 2. Which stock should you add and why? X

Please also help me answer: 1. Standard deviation of the portfolio withPlease also help me answer:

1. Standard deviation of the portfolio with stock B is __%

2. Which stock should you add and why?

X P 12-18 (similar to) Question Help You have a portfolio with a standard deviation of 24% and an expected return of 19%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 30% of your money in the new stock and 70% of your money in your existing portfolio, which one should you add? Expected Return 13% 13% Standard Deviation 22% 17% Correlation with Your Portfolio's Returns 0.3 0.7 Stock A Stock B Standard deviation of the portfolio with stock A is %. (Round to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!