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You wish to combine two stocks, Alphabet and Betabet into a portfolio with an expected standard deviation of 17.3%. The
Posted: Tue Nov 16, 2021 7:53 am
by answerhappygod
- You Wish To Combine Two Stocks Alphabet And Betabet Into A Portfolio With An Expected Standard Deviation Of 17 3 The 1 (29 KiB) Viewed 117 times
You wish to combine two stocks, Alphabet and Betabet into a portfolio with an expected standard deviation of 17.3%. The expected return of Alphabet is 14.5% with a standard deviation of 10%. The expected return of Betabet is 19.8% with a standard deviation of 20%. The correlation between the two stocks is -1. What is the weight of Alphabet? The weight of Alphabet is % (Please retain at least 4 decimal places in your calculations and at least 2 decimal places in the final answer.)