Youestimatetheexpectedarithmeticmean,standarddeviation,andcorrelationmixof your stock bond portfolio as follows: ArithmeticMean Standard Deviation Correlations Stocks

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You estimate the expected arithmetic mean, standard deviation, and correlation mix of your stock bond portfolio as follows:

Arithmetic Mean

Standard Deviation

Correlations

Stocks Bonds

Stocks

10%

20%

1.0

0.4

Bonds

10%

0.4

1.0

If you held a portfolio 60% in stocks and 40% in bonds, what is your portfolio expected return next year? What is the standard deviation of returns?

Related Book For answer-question

Fundamentals of corporate finance

ISBN: 978-0073382395

9th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Posted Date: Feb 14, 2024 06:13 AM

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Youestimatetheexpectedarithmeticmean,standarddeviation,andcorrelationmixof your stock bond portfolio as follows: ArithmeticMean Standard Deviation Correlations Stocks

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Fundamentals of corporate finance

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