You have invested in two shares, Tinkle.com and Circumbendibus Wheels. Tinkle.com has volatility 29.00%, while Circumbendibus Wheels has volatility 48.20%. The correlation between the two shares' returns is 0.72. You have allocated 32.40% of your money to Tinkle.com. What is the volatility of your portfolio? 39.88% 32.70% 54.29% 15.91%
You have invested in two shares, Tinkle.com and Circumbendibus Wheels. Tinkle.com has volatility 29.00%, while Circumbendibus Wheels has volatility 48.20%. The correlation between the two shares' returns is 0.72. You have allocated 32.40% of your money to Tinkle.com. What is the volatility of your portfolio? 39.88% 32.70% 54.29% 15.91%
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 10PROB
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Question
You have invested in two shares, Tinkle.com and Circumbendibus Wheels. Tinkle.com has volatility 29.00%, while Circumbendibus Wheels has volatility 48.20%. The correlation between the two shares' returns is 0.72. You have allocated 32.40% of your money to Tinkle.com. What is the volatility of your portfolio?
39.88% |
||
32.70% |
||
54.29% |
||
15.91% |
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