The correlation between A and B is -0.05. Alice formed Portfolio X by investing in A and B. The expected return of Alice's portfolio is 0.16. Calculate the portfolio. Express your answer as a decimal with four digits after the decimal point (e.g., 0.1234, not 12.34%). Asset Expected Return Standard Deviation ssetExpected ReturnStandard DeviationA0.140.47B0.280.51

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
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The correlation between A and B is -0.05. Alice formed Portfolio X by investing in A and B. The expected return of Alice's portfolio is 0.16. Calculate the variance of Alice's
portfolio. Express your answer as a decimal with four digits after the decimal point (e.g., 0.1234, not 12.34%). Asset Expected Return Standard Deviation
AssetExpected ReturnStandard DeviationAO.140.47B0.280.51
Transcribed Image Text:The correlation between A and B is -0.05. Alice formed Portfolio X by investing in A and B. The expected return of Alice's portfolio is 0.16. Calculate the variance of Alice's portfolio. Express your answer as a decimal with four digits after the decimal point (e.g., 0.1234, not 12.34%). Asset Expected Return Standard Deviation AssetExpected ReturnStandard DeviationAO.140.47B0.280.51
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