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What is the investment proportion in that portfolio

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1. You consider investing in two stock funds. The first is a stock fund A with the expected return 15% and standard deviation 20%, the second is a stock fund B with the expected return 10% and standard deviation 8%. The correlation between the fund return is 0.50.

You require to invest 20% of your capital in the stock fund A.

What is the expected value and standard deviation of that portfolio?

2. You consider investing in two stock funds. The first is a stock fund A with the expected return 15% and standard deviation 20%, the second is a stock fund B with the expected return 10% and standard deviation 8%. The correlation between the fund return is 0.50.

You require to invest 20% of your capital in the stock fund A.

What is the investment proportion in that portfolio?

Reference no: EM132558754

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