Question: Problem 12 Intro The return on Samsung stock has a standard deviation of 33% and the return on Toyota stock has a standard deviation of

Problem 12

Intro

The return on Samsung stock has a standard deviation of 33% and the return on Toyota stock has a standard deviation of 25%. Their covariance is 0.033.

Part 1

If you invest 70% in Samsung and 30% in Toyota, what is the variance of the portfolio?

Part 2

What is the standard deviation of the portfolio?

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