You are considering two stocks with the following characteristics: Expected return of stock 1 (1)...

80.2K

Verified Solution

Question

Finance

You are considering two stocks with the following characteristics: Expected return of stock 1 (1) = 0.17, Expected return of stock 2 (2) = 0.04, Standard deviation of stock 1's returns ( 1) = 0.09, Standard deviation of stock 2's returns ( 2) = 0.03, and Covariance between the rates of returns of stock 1 and stock 2 (21 or 21) = 0.06. If you invest 0.17 percent of your total investment on stock 1 and 0.83 percent on stock 2, what would be the standard deviation of the portfolio consisting of these two stocks?

Please show me how to do this in excel with all the formulas visable, thank you!

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students