Fight Finance

Courses  Tags  Random  All  Recent  Scores

Scores
keithphw$5,691.61
Visitor$1,190.00
Gisele$936.78
doctor$860.00
Visitor$800.00
Visitor$770.00
aurora$629.43
Visitor$580.00
Visitor$568.33
Visitor$500.87
Visitor$500.00
Visitor$497.24
Visitor$477.00
Visitor$470.00
Visitor$468.78
tomtomtom$453.98
Visitor$440.00
royal ne...$430.00
Visitor$419.43
Visitor$400.00
 

Question 556  portfolio risk, portfolio return, standard deviation

An investor wants to make a portfolio of two stocks A and B with a target expected portfolio return of 12% pa.

  • Stock A has an expected return of 10% pa and a standard deviation of 20% pa.
  • Stock B has an expected return of 15% pa and a standard deviation of 30% pa.

The correlation coefficient between stock A and B's expected returns is 70%.

What will be the annual standard deviation of the portfolio with this 12% pa target return?




Copyright © 2014 Keith Woodward