The expected return of Waterway is 19.3 percent, and the expected return of Wildhorse is 24.3 percent. Their standard deviations are 13.3 percent and 21.3 percent, respectively. If a portfolio is composed of 40 percent Waterway and the remainder Wildhorse, calculate the expected return and the standard deviation of the portfolio, given a correlation coefficient between Waterway and Wildhorse of 0.35. (Round intermediate calculations to 4 decimal places, e.g. 31.2125 and final answers to 2 decimal places, e.g. 15.25%.) The expected return Standard deviation of portfolio 22.30 % 44.50 % Calculate the standard deviation if the correlation coefficient is -0.35. (Do not round intermediate calculations. Round answer to 2 decimal places, e.g. 15.25%.) Standard deviation of portfolio -37.14 %

The expected return of Waterway is 19.3 percent, and the expected return of Wildhorse is 24.3 percent. Their standard deviations are 13.3 percent and 21.3 percent, respectively. If a portfolio is composed of 40 percent Waterway and the remainder Wildhorse, calculate the expected return and the standard deviation of the portfolio, given a correlation coefficient between Waterway and Wildhorse of 0.35. (Round intermediate calculations to 4 decimal places, e.g. 31.2125 and final answers to 2 decimal places, e.g. 15.25%.) The expected return Standard deviation of portfolio 22.30 % 44.50 % Calculate the standard deviation if the correlation coefficient is -0.35. (Do not round intermediate calculations. Round answer to 2 decimal places, e.g. 15.25%.) Standard deviation of portfolio -37.14 %

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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