You have a portfolio with a standard deviation of 28% and an expected return of t18%. You are considening adding one of the two stocks in the following table after adding the stock you will have 20% of your money in the new stock and 80% of your money in your existing portfolio, which one should you add? Expected Return Standard Deviation Correlation with Your Portfolio's Returns Stock A Stock B 12% 12% 23% 20% 02 0.7 Standard deviation of the portfolio with stock A is % (Round to two decimal places)
You have a portfolio with a standard deviation of 28% and an expected return of t18%. You are considening adding one of the two stocks in the following table after adding the stock you will have 20% of your money in the new stock and 80% of your money in your existing portfolio, which one should you add? Expected Return Standard Deviation Correlation with Your Portfolio's Returns Stock A Stock B 12% 12% 23% 20% 02 0.7 Standard deviation of the portfolio with stock A is % (Round to two decimal places)
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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You have a portfolio with a standard deviation of 28% and an expected return of 18%. You are considening adding one of the two stocks in the following table after adding the stock you will have 20% of your money in the new stack
and 80% of your money in your existing portfolio, which one should you add?
Expected Standard
Return
Correlation with
Deviation
Your Portfolio's Returns
Stock A
12%
23%
02
Stock B
12%
20%
0.7
Standard deviation of the portfolio with stock A is% (Round to two decimal places)
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