You have a portfolio with a standard deviation of 20% and an expected return of...

60.1K

Verified Solution

Question

Finance

image

You have a portfolio with a standard deviation of 20% and an expected return of 16%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 25% of your money in the new stock and 75% of your money in your existing portfolio, which one should you add? Expected Return 12% 12% Standard Deviation 25% 17% Correlation with Your Portfolio's Returns 0.2 0.7 Stock A Stock B Standard deviation of the portfolio with stock A is %. (Round to two decimal places.)

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