portfolo P consists of 2 stocks 50% is invested on stock A and 50% is invested in stock B. stock A has a standard deviation of 25% and a beta of 1.2, and stock B has a standard deviation of 35% and a beta od 0.80. the correlation between thses stocks is 0.4. what is the standard deviation of portfolio P? what is the beta of plrtfolio P ? which stock is reskier to a diversified investor?
portfolo P consists of 2 stocks 50% is invested on stock A and 50% is invested in stock B. stock A has a standard deviation of 25% and a beta of 1.2, and stock B has a standard deviation of 35% and a beta od 0.80. the correlation between thses stocks is 0.4. what is the standard deviation of portfolio P? what is the beta of plrtfolio P ? which stock is reskier to a diversified investor?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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portfolo P consists of 2 stocks 50% is invested on stock A and 50% is invested in stock B. stock A has a standard deviation of 25% and a beta of 1.2, and stock B has a standard deviation of 35% and a beta od 0.80. the correlation between thses stocks is 0.4.
what is the standard deviation of portfolio P?
what is the beta of plrtfolio P ?
which stock is reskier to a diversified investor?
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