The stock of Bruin, Incorporated, has an expected return of 19 percent and a standard deviation of 34 percent. The stock of Wildcat Company has an expected return of 14 percent and a standard deviation of 49 percent. The correlation between the two stocks is 0.40. Calculate the expected return and standard deviation of the minimum variance portfolio. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Expected return Standard deviation 67.00%

The stock of Bruin, Incorporated, has an expected return of 19 percent and a standard deviation of 34 percent. The stock of Wildcat Company has an expected return of 14 percent and a standard deviation of 49 percent. The correlation between the two stocks is 0.40. Calculate the expected return and standard deviation of the minimum variance portfolio. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Expected return Standard deviation 67.00%

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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