Purchase Solution

Expected Return and Standard Deviation of Portfolio

Not what you're looking for?

Ask Custom Question

Stock A has an expected return of 12% and a standard deviation of 40%. Stock B has an expected return of 18% and a standard deviation of 60%. The correlation coefficient between Stocks A and B is 0.2. What are the expected return and standard deviation of a portfolio invested 30% in Stock A and 70% in Stock B?

Purchase this Solution
Solution Summary

The solution explains how to calculate the Expected Return and Standard Deviation of Portfolio

Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

View More Free Quizzes
Related BrainMass Solutions

  • Finding the Standard Deviation of a Portfolio Using Beta

    One investor creates a portfolio on the efficient frontier with an expected return of 10% and another creates a portfolio on the efficient frontier with an expected return of 20%. What is the standard deviation of the return of the two portfolios?

  • Expected Return and Standard Deviation of Portfolio Caclulations

    29955 Expected return and standard deviation of portfolio 3. Consider two securities with expected return of 16% and 20% and standard deviation of 25% and 40%, respectively. a.

  • Percival Hygiene Portfolio Combinations Risk and Return

    The expected return of this portfolio is 10.00% and the standard deviation of return of this portfolio is 8.00% (see calculations below) This portfolio gives a higher return and lower risk (standard deviation) than the bond portfolio

  • Important information about Expected Return and Standard Deviation of a Portfolio

    237796 Important information about Expected Return and Standard Deviation of a Portfolio Stock A has an expected return of 12% and a standard deviation of 40%.

  • Expected return and standard deviation for a portfolio

    Calculate the expected return and expected standard deviation of a two stock portfolio when r1,2 = - .60 and w1 = .75. b. Calculate the expected returns and expected standard deviations of a two stock portfolio when r1,2 = .80 and w1 = .60.

  • Expected return and standard deviation

    12.563%-0.175)^2X0.35) Standard deviation = 2.90% The solution explains how to calculate the expected return and standard deviation for individual securities and for a portfolio

  • Portfolio Weights, Expected Returns, and Standard Deviation

    This portfolio will also have a greater expected return. What are the portfolio weights and expected return of this portfolio? #5. Examining the opportunity set, notice there is a portfolio that has the lowest standard deviation.

  • Stock/portfolio problem

    Your portfolio has a beta equal to 1.6 and its expected return is 15%. B. Your portfolio has a standard deviation of 30% and its expected return is 15%. C. Your portfolio has a standard deviation less than 30% and its beta is greater than 1.6.

  • Finance: Portfolio return and risk.

    393456 Finance: Portfolio return and risk. Problem 13. Security A offers an expected return of 15 percent with a standard deviation of 7 percent. Security B offers an expected return of 9 percent with a standard deviation of 4 percent.

  • Expected return, standard deviation of stocks/portfolio

    : expected rate of return would a security earn = 11.1 % The solution calculate the expected return and standard deviation of a portfolio and expected return of a stock using capital-asset-pricing model (CAPM).

View More Related Solutions