1. Security A has an expected return of 8%t and a standard deviation of 40%. Security B has an expected return of 20% and a standard deviation of 120%. a) If you place half of your money in each stock, what is your expected return? b) If you place 30% of your money in A and the remaining 70% in B, what is your expected return? c) If the correlation between the returns of Securities A and B above is-0.5, what are the variance and the standard deviation of the returns of each of the two portfolios you found in parts a) and 1 b) above?
Paper#5442 | Written in 18-Jul-2015Price : $25