Stock 1 has an expected return of 4% and a standard deviation of 38 %. Stock 2 has an expected return of 11% and a standard deviation of 23 % . Their correlation is .17. You invest 30% in stock 1 and 70% in stock 2. What is the variance of the portfolio?What is the standard deviation of the portfolio?

Essentials Of Investments
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Chapter1: Investments: Background And Issues
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Stock 1 has an expected return of 4% and a standard deviation of 38 %. Stock 2 has an
expected return of 11% and a standard deviation of 23 % . Their correlation is .17. You invest
30% in stock 1 and 70% in stock 2. What is the variance of the portfolio?What is the standard
deviation of the portfolio?

 

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