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Problem 24-4 (TUTOR WILL YOU PLEASE PLACE HOMEWORK...

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Problem 24-4 (TUTOR WILL YOU PLEASE PLACE HOMEWORK ON EXCEL SPREAD-SHEET) Two-Asset Portfolio The Capital Market Line and the Security Market Line Stock A has an expected return of 10% and a standard deviation of 40%. Stock B has an expected return of 16% and a standard deviation of 60%. The correlation coefficient between Stocks A and B is 0.2. What is the expected return of a portfolio invested 40% in Stock A and 60 percent in Stock B? Round your answer to two decimal places. ?% What is the standard deviation of a portfolio invested 40% in Stock A and 60% in Stock B? Round your answer to two decimal places. ?%

 

Paper#10204 | Written in 18-Jul-2015

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