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 |