Two stock abc and xyz have expected returns of 30% and 40% with standard deviation of 15% and 20% respectively. What will be average return and risk if 40% of ones. Funds are invested in ABC and 60% are invested in XYZ© BrainMass Inc. brainmass.com October 10, 2019, 1:03 am ad1c9bdddf
The expected return of stock ABC, r1=30%, the expected return of stock XYZ, r2=40%
The standard deviation of stock ABC, σ1=15%, the standard deviation of stock ...
The formula for average risk is applied.