An investor is considering a two-asset portfolio

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An investor is considering a two-asset portfolio. Stock A has an exected return of $4.50 per share with a standard deviation of $1.00, while stock B has an expected return of $3.75 with a standard deviation of $.75. The covariance between the two stocks is -.35. Find the portfolio risk if:

a. The stocks are weighted equally in the portfolio

b. the amount of stock a is one-fourth as much as stock b.

c. The amount of stock b is one-fourth as much as stock a.

Reference no: EM131012654

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