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Correlation coefficient in expected returns

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Reference no: EM132484920

Consider the following:

Asset A has an expected return of 10.67% and a standard deviation in expected returns of 16.36%.

Asset B has an expected return of 16.85% and a standard deviation in expected returns of 22.72%.

Suppose a portfolio is invested 75% in Asset A and 25% in Asset B. The variance of the portfolio = 0.02525

What is the correlation coefficient in expected returns between Asset A and Asset B?

Correlation(A,B) =

(Round your answer to 2 decimal places, e.g 0.36)

Reference no: EM132484920

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