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Stock P has an expected return of 10.4% per year and a standard deviation of expected return of 19.9% per year. Stock Q
Posted: Wed Jul 06, 2022 6:43 pm
by answerhappygod
- Stock P Has An Expected Return Of 10 4 Per Year And A Standard Deviation Of Expected Return Of 19 9 Per Year Stock Q 1 (35.68 KiB) Viewed 23 times
Stock P has an expected return of 10.4% per year and a standard deviation of expected return of 19.9% per year. Stock Q has an expected return of 9.7% per year and a standard deviation of expected return of 16.8% per year. The correlation coefficient for the expected returns of the two stocks is 0.27. What is the standard deviation of the expected return for a portfolio that consists of 50% stock P and 50% stock Q? 1) 14.7% 2) 12.9% 3) 13.8% 4) 13.2% 5) 14.2%