Question: What is the answer for the standard deviation? You wish to combine two stocks, Encor and Maestro, into a portfolio with an expected return of

What is the answer for the standard deviation?

What is the answer for the standard deviation? You wish to combine

You wish to combine two stocks, Encor and Maestro, into a portfolio with an expected return of 15.3 percent. The expected return of Encor is 1.5 percent with a standard deviation of 1 percent. The expected return of Maestro is 23.4 percent with a standard deviation of 10.2 percent. The correlation between the two stocks is 0.4. Your answer is correct. What is the composition (weights) of the portfolio? (Round answer to 4 decimal places, e.g. 14.5125%.) Weight in Encor 36.9863 % Weight in Maestro 63.0136 % e Textbook and Media X Your answer is incorrect. What is the portfolio standard deviation? (Round intermediate calculations to 7 decimal places, e.g. 0.5125129 and the final answer to 4 decimal places, e.g. 14.5125%.) Standard deviation 6.4615 %

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