portfolo P consists of 2 stocks 50% is invested on stock A and 50% is invested in stock B. stock A has a standard deviation of 25% and a beta of 1.2, and stock B has a standard deviation of 35% and a beta od 0.80. the correlation between thses stocks is 0.4. what is the standard deviation of portfolio P? what is the beta of plrtfolio P ? which stock is reskier to a diversified investor?
portfolo P consists of 2 stocks 50% is invested on stock A and 50% is invested in stock B. stock A has a standard deviation of 25% and a beta of 1.2, and stock B has a standard deviation of 35% and a beta od 0.80. the correlation between thses stocks is 0.4. what is the standard deviation of portfolio P? what is the beta of plrtfolio P ? which stock is reskier to a diversified investor?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter3: Risk And Return: Part Ii
Section: Chapter Questions
Problem 3P: Two-Asset Portfolio
Stock A has an expected return of 12% and a standard deviation of 40%. Stock B...
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portfolo P consists of 2 stocks 50% is invested on stock A and 50% is invested in stock B. stock A has a standard deviation of 25% and a beta of 1.2, and stock B has a standard deviation of 35% and a beta od 0.80. the correlation between thses stocks is 0.4.
what is the standard deviation of portfolio P?
what is the beta of plrtfolio P ?
which stock is reskier to a diversified investor?
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