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What is the standard deviation of the portfolio

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Reference no: EM133015621

Problem - Consider a portfolio that contains two stocks. Stock A has an expected return of 20% and a standard deviation of 79%. Stock B has an expected return of -1% and a standard deviation of 30%. The proportion of your wealth invested in stock A is 50%. The correlation between the two stocks is 0.25.

Required -

1. What is the expected return of the portfolio? Enter your answer as a percentage. Do not include the percentage sign in your answer.

2. What is the standard deviation of the portfolio? Enter your answer as a percentage. Do not include the percentage sign in your answer.

Reference no: EM133015621

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