Answer to Question #190064 in Finance for jafar suleiman

Question #190064

You are creating a portfolio of Stock D and Stock BW (from earlier).

You are

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.

The correlation

coefficient between BW and D is 0.75.What is the expected return and standard

deviation of the portfolio?



1
Expert's answer
2021-05-07T09:54:45-0400

Assuming the ex pected return and standard deviation of stock BW is 9% and 13.15% respectively;


(i) Determining the portfolio expected return







(ii)

Determining portfolio standard deviation

Two-asset portfolio:




determining the portfolio standard deviation






Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS