Use the following information to calculate the expected return and standard deviation of a portfolio that is 70 percent invested in 3 Doors, Inc., and 30 percent invested in Down Co.: (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected return, E(R) Standard deviation, σ Correlation 3 Doors, Inc. 17% 47 Expected return % Standard deviation % Down Co. 14% 49 .32
Use the following information to calculate the expected return and standard deviation of a portfolio that is 70 percent invested in 3 Doors, Inc., and 30 percent invested in Down Co.: (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Expected return, E(R) Standard deviation, σ Correlation 3 Doors, Inc. 17% 47 Expected return % Standard deviation % Down Co. 14% 49 .32
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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Transcribed Image Text:Use the following information to calculate the expected return and standard deviation of a portfolio that is 70 percent invested in 3
Doors, Inc., and 30 percent invested in Down Co.: (Do not round intermediate calculations. Enter your answers as a percent
rounded to 2 decimal places.)
Expected return, E(R)
Standard deviation, σ
Correlation
3 Doors, Inc.
17%
47
Expected return
%
Standard deviation
%
Down Co.
14%
49
.32
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