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What is the expected return of a portfolio with 55% invested in Stock A and...

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Finance

  1. What is the expected return of a portfolio with 55% invested in Stock A and 45% in Stock B?

    Stock A: E(r)=17% and Standard deviation=20%

    Stock B: E(r)=11% and Standard deviation=12%

    Correlation between Stock A and B = 0.8

    1. 10.62%

    2. 11.40%

    3. 12.75%

    4. 13.85%

    5. 14.30%

  2. Question 12

    What is the variance of a portfolio with 55% invested in Stock A and 45% in Stock B.

    Stock A: E(r)=17% and Standard deviation=20%

    Stock B: E(r)=11% and Standard deviation=12%

    Correlation between Stock A and B = 0.8

    1. 0.0198

    2. 0.0245

    3. 0.0293

    4. 0.0269

    5. 0.0210

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