The following are the returns of share Hangseng Ltd for the last four years: Year
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Question:
Year Share price ($) Dividend per share ($)
2017 100 2.5
2018 105 2.5
2019 115 2.5
2020 107 3
Mr Halder wishes to build a portfolio by investing 35% in Hangseng Ltd and 65% in Haldyn Ltd. The expected return and standard deviation of Haldyn Ltd are 15% and 6% respectively. The covariance between Hangseng Ltd and Haldyn Ltd is -10.
Calculate the expected return and standard deviation of Mr Halder's portfolio.
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259722615
9th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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