Solve the standard deviation of the portfolio

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Reference no: EM132582109

You are given the following information about the stocks in a two-stock portfolio:

Stock                           Return                Portfolio Weight                  Standard Deviation

The Blue Hotel, Inc.      22%                     45%                               9%

Joys Food, Inc.              25%                   55%                    11%

Correlation coefficient between the two stocks is 0.5.

Question 1: Using the information above, calculate the following:

a. The expected return of the portfolio,

b. The variance of the portfolio,

c. The standard deviation of the portfolio.

Reference no: EM132582109

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