Your portfolio consists of two securities: Transcomm and MidCap. The expected return for Transcomm is 14.2 percent, while for MidCap it is 4.2 percent. The standard deviation is 5.2 percent for Transcomm and 19.2 percent for MidCap. Assume 35 percent of the portfolio is invested in Transcomm. X Your answer is incorrect. Calculate the portfolio standard deviation if the correlation between the stocks is 0.80. (Round intermediate calculations to 6 decimal places, e.g. 0.251254 and the final answer to 2 decimal places, e.g. 15.25%.) Portfolio standard deviation eTextbook and Media X Your answer is incorrect. 15.22 % Calculate the portfolio standard deviation if the correlation between the stocks is -0.80. (Round intermediate calculations to 6 decimal places, e.g. 0.251254 and the final answer to 2 decima places, e.g. 15.25%.) Portfolio standard deviation 10.59 %

Your portfolio consists of two securities: Transcomm and MidCap. The expected return for Transcomm is 14.2 percent, while for MidCap it is 4.2 percent. The standard deviation is 5.2 percent for Transcomm and 19.2 percent for MidCap. Assume 35 percent of the portfolio is invested in Transcomm. X Your answer is incorrect. Calculate the portfolio standard deviation if the correlation between the stocks is 0.80. (Round intermediate calculations to 6 decimal places, e.g. 0.251254 and the final answer to 2 decimal places, e.g. 15.25%.) Portfolio standard deviation eTextbook and Media X Your answer is incorrect. 15.22 % Calculate the portfolio standard deviation if the correlation between the stocks is -0.80. (Round intermediate calculations to 6 decimal places, e.g. 0.251254 and the final answer to 2 decima places, e.g. 15.25%.) Portfolio standard deviation 10.59 %

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 12P

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