Mr. Jones has a 2-stock portfolio with a total value of $530,000. $205,000 is invested in...
Mr. Jones has a 2-stock portfolio with a total value of
$530,000. $205,000 is invested in Stock A and the remainder is
invested in Stock B. If standard deviation of Stock A is 15.65%,
Stock B is 7.75%, and correlation between Stock A and Stock B is
–0.40, what would be the expected risk on Mr. Jones’ portfolio
(standard deviation of the portfolio return)?
Calcualte with at least 4 decimal places and round your answer to
two decimal places. For example, if your answer is $345.6671 round
as 345.67 and if your answer is .05718 or 5.7182% round as
5.72.
| 6.26% |
| 4.99% |
| 5.60% |
| 7.46% |
| 6.02% |
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