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Homework answers / question archive / The expected return on Big Time Toys is 13% and its standard deviation is 21
The expected return on Big Time Toys is 13% and its standard deviation is 21.2%. The expected return on Chemical Industries is 8% and its standard deviation is 26.8%. a. Suppose the correlation coefficient for the two stocks' returns is 0.34. What are the expected return and standard deviation of a portfolio with 66% invested in Big Time Toys and the rest in Chemical Industries?
If the correlation coefficient is 0.84, recalculate the portfolio expected return and standard deviation, assuming the portfolio weights are unchanged.
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