Question: The expected return on MSFT next year is 12% with a standard deviation of 20%. The expected 4) return on AAPL next year is 24%
The expected return on MSFT next year is 12% with a standard deviation of 20%. The expected 4) return on AAPL next year is 24% with a standard deviation of 30%. The correlation between the two stocks is .6. If James makes equal investments in MSFT and AAPL, what is the expected return on his portfolio. please explain answer
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
