Crowdly
Add to Chrome
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation...
✅ The verified answer to this question is available below. Our community-reviewed solutions help you understand the material better.
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation
of return of 25% while stock B has a standard deviation of return of 5%. Stock A
comprises 20% of the portfolio while stock B comprises 80% of the portfolio. If
the variance of return on the portfolio is .0050, the correlation coefficient between
the returns on A and B is __________.
❌
❌
❌
✅