logo

Crowdly

You plan to invest 28% of your portfolio in Company A with the remainder to be i...

✅ The verified answer to this question is available below. Our community-reviewed solutions help you understand the material better.

You plan to invest 28% of your portfolio in Company A with the remainder to be invested in Company B. The standard deviation of Company A’s stock returns is 15%. The standard deviation of Company B’s stock returns is 21%. The correlation between the stock returns of Company A and Company B is 0.64. What is the standard deviation of your portfolio’s returns (as a percentage to two decimal places)?

Your answer should be expressed as a percentage to 2 decimal places but do not include a percent sign. For example, if your answer is 10.237%, you should enter 10.24. If your answer is 10.233%, you should enter 10.23. Please do not enter your answer as a decimal, such as 0.1024.

More questions like this

Want instant access to all verified answers on moodle.telt.unsw.edu.au?

Get Unlimited Answers To Exam Questions - Install Crowdly Extension Now!