Essay
The stock market of country A has an expected return of 8 percent,and standard deviation of expected return of 5 percent.The stock market of country B has an expected return of 16 percent and standard deviation of expected return of 10 percent.
Assume that the correlation of expected return between A and B is negative 1.Calculate the standard deviation of expected return of the portfolio in the last question.
Correct Answer:
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σ2p = (WAσA)2 + (WBσB)2 + 2WAσAWBσBPAB σ2p =(1...View Answer
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