Calculate the risk and return of the portfolio


Question: Assume your friend's portfolio consists of two stocks A and B. The correlation coefficient of A and B is zero. Assuming the following additional data, calculate the risk and return of the portfolio.



Stock A
Stock B





Weights in the portfolio
0.4
0.6
Expected return (%)
16.0
20.0
Standard deviation (%)
10.0
10.0

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Finance Basics: Calculate the risk and return of the portfolio
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