Explore BrainMass

# Expected return and standard deviation of a portfolio

Not what you're looking for? Search our solutions OR ask your own Custom question.

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Suppose A has an expected return of 10 percent and a standard deviation of 20 percent. Asset B has an expected return of 16 percent and a standard deviation of 40 percent. If the correlation between A and B is 0.6, what are the expected return and standard deviation for a portfolio comprised of 30 percent Asset A and 70 percent asset B?

© BrainMass Inc. brainmass.com March 4, 2021, 7:38 pm ad1c9bdddf
https://brainmass.com/business/finance/expected-return-standard-deviation-portfolio-113173

#### Solution Preview

Suppose A has an expected return of 10 percent and a standard deviation of 20 percent. Asset B has an expected return of 16 percent and a standard deviation of 40 percent. If the correlation ...

#### Solution Summary

The expected return and standard deviation of a portfolio consisting of two assets is calculated.

\$2.49