According to an investment web site, the performance of two index funds in the past 10years is summarized by the following table.FundMeanStandard DeviationA6%6%В8%8%The web site also reveals that the correlation coefficient between Funds A and B is 0.4.If a portfolio consists of 50% in each of Funds A and B, what are the expected return andstandard deviation for such a portfolio? Select the closest numbers.standard deviation 8.21%standard deviation 5.88%standard deviation 8.21%standard deviation 5.88%а.mean = 7%%3D%3Db.mean = 6.5%%3Dс.mean = 6%%3Dd.mean = 7%None of the above%3Dе.

Answered: According to an investment web site,…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

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Problem 1P

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According to an investment web site, the performance of two index funds in the past 10
years is summarized by the following table.
Fund
Mean
Standard Deviation
A
6%
6%
В
8%
8%
The web site also reveals that the correlation coefficient between Funds A and B is 0.4.
If a portfolio consists of 50% in each of Funds A and B, what are the expected return and
standard deviation for such a portfolio? Select the closest numbers.
standard deviation 8.21%
standard deviation 5.88%
standard deviation 8.21%
standard deviation 5.88%
а.
mean = 7%
%3D
%3D
b.
mean = 6.5%
%3D
с.
mean = 6%
%3D
d.
mean = 7%
None of the above
%3D
е.

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Consider,the performance of two index funds in the past 10 years is summarized by the following table:

Fund	Weights	Mean	Standard deviation
A	0.5	0.06	0.06
B	0.5	0.08	0.08

The correlation coefficient between Funds A and B is 0.4.and portfolio consists of 50% in each of Funds A and B.

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