Essay
Elizabeth's Portfolio
Elizabeth has decided to form a portfolio by putting 30% of her money into stock 1 and 70% into stock 2.She assumes that the expected returns will be 10% and 18%,respectively,and that the standard deviations will be 15% and 24%,respectively.
-{Elizabeth's Portfolio Narrative} Compute the standard deviation of the returns on the portfolio assuming that the coefficient of correlation is 0.5.
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When ρ = 0.5; V(Rp)= 0.03781.Th...View Answer
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