A portfolio has 40% of its value in ABC shares and the rest in XYZ stock. The standard deviation of

A portfolio has 40% of its value in ABC shares and the rest in XYZ stock. The standard deviation of

Question:

Don't use plagiarized sources. Get Your Custom Assignment on
A portfolio has 40% of its value in ABC shares and the rest in XYZ stock. The standard deviation of
From as Little as $13/Page

A portfolio has 40% of its value in ABC shares and the rest in XYZ stock. The standard deviation of ABC and XYZ are 35% and 30%, respectively, and the correlation between ABC and XYZ is 0.4. What is the standard deviation of the portfolio?

Expert Answer:

Answer rating: 100% (QA)

Let s assume the total value of the portfolio is 1 or 100 Given that 40 of the portfoli
View the full answer