Will upvote if correct round to 4 decimal places Stock A has an expected return of 16% and a standard deviation of 28%. Stock B has an expected return of 14% and a standard deviation of 13%. The risk-free rate is 1.8% and the correlation between Stock A and Stock B is 0.4. Build the optimal risky portfolio of Stock A and Stock B. What is the standard deviation of this portfolio?
Will upvote if correct round to 4 decimal places Stock A has an expected return of 16% and a standard deviation of 28%. Stock B has an expected return of 14% and a standard deviation of 13%. The risk-free rate is 1.8% and the correlation between Stock A and Stock B is 0.4. Build the optimal risky portfolio of Stock A and Stock B. What is the standard deviation of this portfolio?
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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Will upvote if correct round to 4 decimal places
Stock A has an expected return of 16% and a standard deviation of 28%. Stock B has an expected return of 14% and a standard deviation of 13%. The risk-free rate is 1.8% and the correlation between Stock A and Stock B is 0.4. Build the optimal risky portfolio of Stock A and Stock B. What is the standard deviation of this portfolio?
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