Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Stock A's return has a Beta of 1

Stock A's return has a Beta of 1

Finance

Stock A's return has a Beta of 1.3 and a correlation with the market return of 0.8. The standard deviation of the market return is 0.135. Stock B has a standard deviation of its return equal to 0.16 and a correlation with the return of Stock A equal to 0.64. What is the standard deviation of a portfolio in which you invest 130% of your wealth in Stock A and short 30% of your wealth in Stock B.

Option 1

Low Cost Option
Download this past answer in few clicks

2.86 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE