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Posted by: Homeworkhelp
Price Quoted by Student: $2.5
Posted On: 2011-01-24 12:12:59

Stocks A and B each have an expected return of 15%, a standard deviation of 20%, and a beta of 1.2. The returns on the two stocks have a correlation coefficient of +0.6. You have a portfolio that consists of 50% A and 50% B. Find expected return?

The expected return on a portfolio is the weighted
Price $2.5
Attachment 1: Stocks A and B.doc
Solution Posted By: Homeworkhelp    Posted on: 24-01-2011