You are creating a portfolio of Stock D and Stock BW (from earlier).
investing $2,000 in Stock BW and $3,000 in Stock D.
The expected return and
standard deviation of Stock D is 8% and 10.65% respectively.
coefficient between BW and D is 0.75.What is the expected return and standard
deviation of the portfolio?
Assuming the ex pected return and standard deviation of stock BW is 9% and 13.15% respectively;
(i) Determining the portfolio expected return
Determining portfolio standard deviation
determining the portfolio standard deviation