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Stock A has the expected return of 0.06 and standard deviation of O.10. Stock B has the expected return of 0.03 and the standard deviation of 0.05. The correlation between returns of Stocks A and B is 0.5. You invest a fraction of 0.6 of your wealth in A and the rest in B. What is the expected return of your portfolio? Enter your answer in x.xxx form. What is the variance of your portfolio? Enter your answer in x.xxxx form.

Stock A has the expected return of 0.06 and standard deviation of O.10. Stock B has the expected return of 0.03 and the standard deviation of 0.05. The correlation between returns of Stocks A and B is 0.5. You invest a fraction of 0.6 of your wealth in A and the rest in B. What is the expected return of your portfolio? Enter your answer in x.xxx form. What is the variance of your portfolio? Enter your answer in x.xxxx form.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Stock A has the expected return of 0.06 and standard deviation of 0.10. Stock B has the expected return of 0.03 and the standard deviation of 0.05. The correlation between returns of Stocks A and B is 0.5. You invest a fraction of 0.6 of your wealth in A and the rest in B. What is the expected return of your portfolio? Enter your answer in x.xxx form. What is the variance of your portfolio? Enter your answer in x.XXXx form.
Transcribed Image Text:Stock A has the expected return of 0.06 and standard deviation of 0.10. Stock B has the expected return of 0.03 and the standard deviation of 0.05. The correlation between returns of Stocks A and B is 0.5. You invest a fraction of 0.6 of your wealth in A and the rest in B. What is the expected return of your portfolio? Enter your answer in x.xxx form. What is the variance of your portfolio? Enter your answer in x.XXXx form.
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