Stock A has expected return rate 15% and standard deviation 1.7%. Stock B has expected return rate 7% and standard devia

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answerhappygod
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Stock A has expected return rate 15% and standard deviation 1.7%. Stock B has expected return rate 7% and standard devia

Post by answerhappygod »

Stock A has expected return rate 15% and standard deviation
1.7%. Stock B has expected return rate 7% and standard deviation
1.1. %. The correlation coefficient between the 2 stocks is
0.62. If you invest 30% of your funds to stock A and 70% to stock B
and the level of risk aversion is 4, which you would prefer, Stock
A, B or the portfolio?
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