Fight Finance

Courses  Tags  Random  All  Recent  Scores

Scores
keithphw$5,781.61
oosterhoff$1,667.00
Visitor$464.00
Visitor$450.00
Visitor$380.00
Visitor$327.00
Visitor$320.00
allen$320.00
Visitor$310.00
Visitor$300.00
Visitor$289.43
Visitor$280.00
Visitor$280.00
Apo$270.00
Visitor$260.00
Visitor$260.00
fktragedy$250.00
Visitor$238.61
Visitor$230.00
Visitor$230.00
 

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