What is the mean and standard deviation of a portfolio

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Reference no: EM131337376

You are considering allocating between the SP500 and a long term Treasury bond ETF. Assume the SP500 earns 10% of expected returns with 16% annual volatility. Assume the long term bond earns 6% expected returns with 10% annual volatility.

Assume a correlation of -0.6 what is the mean and standard deviation of a portfolio with 50% in stocks and 50% in bonds.

Assume a correlation of 0.6 what is the mean and standard deviation of a portfolio with 50% in stocks and 50% in bonds.

PLEASE WRITE THE STEPS do not USE EXCEL PLEASE, Finance/Economics/Stats and probability

Reference no: EM131337376

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