Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you are creating a portfolio of two stocks. the fi

You are creating a portfolio of two stocks. The first one has a standard deviation...

80.2K

Verified Solution

Question

Finance

image

You are creating a portfolio of two stocks. The first one has a standard deviation of 19% and the second one has a standard deviation of 39%. The correlation coefficient between the returns of the two is 0.0. You will invest 48% of the portfolio in the first stock and the rest in the second stock. What will be the standard deviation of this portfolio's returns? Answer in percent, rounded to two decimal places (e.g., 4.32%=4.32). Type your numeric answer and submit 23.29 Hint Use the formula for the standard deviation of returns for a portfolio of two stocks

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