Suppose we want to determine the expected return and standard deviation for a portfolio of assets A (60%) and B (40%). The expected returns of assets A and B for each of the next 5 years are given in columns 1 and 2 respectively in the table. Find the expected return and standard deviation for the portfolio. Years A B 2018 10% 6% 2019 15% 8% 2020 12% 10% 2021 9% 7% 2022 14% 9%
Suppose we want to determine the expected return and standard deviation for a portfolio of assets A (60%) and B (40%). The expected returns of assets A and B for each of the next 5 years are given in columns 1 and 2 respectively in the table. Find the expected return and standard deviation for the portfolio. Years A B 2018 10% 6% 2019 15% 8% 2020 12% 10% 2021 9% 7% 2022 14% 9%
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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Suppose we want to determine the expected return and standard deviation for a portfolio of assets A (60%) and B (40%). The expected
Years A B
2018 10% 6%
2019 15% 8%
2020 12% 10%
2021 9% 7%
2022 14% 9%
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