Stocks A and B have expected returns 8% and 10%, and standard deviation of returns of 20% each. If they are uncorrelat
Posted: Wed Mar 09, 2022 8:41 am
Stocks A and B have expected returns 8% and 10%, and standard
deviation of returns of 20% each. If they are
uncorrelated, then the portfolio variance is given by
wA2σA2 +
wB2σB2. What are
the portfolio mean return and risk (standard deviation) if the
weights are 60-40 (in favour of A)?
Question 3 options:
8.8%, 14%
9.2% 20%
9.2%, 14%
8.8%, 20%
deviation of returns of 20% each. If they are
uncorrelated, then the portfolio variance is given by
wA2σA2 +
wB2σB2. What are
the portfolio mean return and risk (standard deviation) if the
weights are 60-40 (in favour of A)?
Question 3 options:
8.8%, 14%
9.2% 20%
9.2%, 14%
8.8%, 20%