An investor owns a portfolio consisting of two mutual funds, A and B, with 35% invested in A. The following table lists the inputs for these funds. Measures Expected value Variance Covariance Fund A 19 91 Fund B 13 37 26 a. Calculate the expected value for the portfolio return. (Round your answer to 2 decimal places.) Expected value 15.10 b. Calculate the standard deviation for the portfolio return. (Round intermediate calculations to at least 4 decimal places. Round your final answer to 2 decimal places.)

An investor owns a portfolio consisting of two mutual funds, A and B, with 35% invested in A. The following table lists the inputs for these funds. Measures Expected value Variance Covariance Fund A 19 91 Fund B 13 37 26 a. Calculate the expected value for the portfolio return. (Round your answer to 2 decimal places.) Expected value 15.10 b. Calculate the standard deviation for the portfolio return. (Round intermediate calculations to at least 4 decimal places. Round your final answer to 2 decimal places.)

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 9PROB

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