What is the expected return of her portfolio

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Question - Suppose Janet Smith holds 100 shares of JPMorgan Chase stock and 300 shares of Bank Of Allivliva stock. JPMorgan Chase is currently sold at $80 per share, while Bank of America is sold at $40. The expected returns of JPMorgan Chase and Bank of America are 15% and 20%, respectively, and the standard deviations are 8% and 20%, respectively. Assume that the correlation coefficient between the two stocks is 0.38. What is the expected return of her portfolio?

Reference no: EM133077761

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