Two securities, A and B, with standard deviation of 30% and 40%, respectively. Calculate the standard deviation of a portfolio weighted equally between two securitites if their correlation is:
And Henry's portfolio is composed of three securities with the following characteristics:
Security A with Beta 1.20, Standard Deviation random error term of 5%, proportion .30
Security B with beta 1.05, Standard Deviation random error term of 8%, proportion .50
Security C with beta .90, Standard Deviation random error term of 2% , proportion .20
If standard deviation of the market index is 18%, what is the total risk of the portfolio?
How do you get the answers, what are the calculations?© BrainMass Inc. brainmass.com October 9, 2019, 5:02 pm ad1c9bdddf
The expert calculates the standard deviation of a portfolio.