Problem 11-12 Portfolio Variance (LO2, CFA4) Use the following information to calculate the expected return and standard deviation of a portfolio that is 70 percent investe Doors, Incorporated, and 30 percent invested in Down Company: Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Expected return, E(R) Standard deviation, o Correlation 3 Doors, Incorporated 12% 42 8.27 Down Company 12% 44
Problem 11-12 Portfolio Variance (LO2, CFA4) Use the following information to calculate the expected return and standard deviation of a portfolio that is 70 percent investe Doors, Incorporated, and 30 percent invested in Down Company: Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Expected return, E(R) Standard deviation, o Correlation 3 Doors, Incorporated 12% 42 8.27 Down Company 12% 44
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 9PROB
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Transcribed Image Text:Problem 11-12 Portfolio Variance (LO2, CFA4)
Use the following information to calculate the expected return and standard deviation of a portfolio that is 70 percent invested in 3
Doors, Incorporated, and 30 percent invested in Down Company:
Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
Expected return, E(R)
Standard deviation, o
Correlation
Expected return
Standard deviation
3 Doors,
Incorporated
12%
42
0.27
%
%
Down
Company
12%
44
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