Stock A has an expected return of 12% and a standard deviationof 40%. Stock B has an expected return of 18% and a standard deviation of 60%. The correlationcoefficient between Stocks A and B is 0.2. What are the expected return and standard deviation of a portfolio invested 30% in Stock A and 70% in Stock B?
The determination of the expected return and standard deviation of a portfolio is examined in the solution which includes a PDF, Word and Excel file.