Here are the expected returns are two stocks. Prob 10% 80% 10% X - 20% 20% 40% Y 10% 15% 20% If you form a 50-50 portfolio (50% in X and 50% in Y) of two stocks, what is the standard deviation of the portfolio?

Here are the expected returns are two stocks. Prob 10% 80% 10% X - 20% 20% 40% Y 10% 15% 20% If you form a 50-50 portfolio (50% in X and 50% in Y) of two stocks, what is the standard deviation of the portfolio?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Here are the expected returns are two stocks.
Prob
10%
80%
10%
X
- 20%
20%
40%
Y
10%
15%
20%
If you form a 50-50 portfolio (50% in X and 50% in Y) of two stocks, what is the
standard deviation of the portfolio?

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