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Homework answers / question archive / The stock of Alpha Company has an expected return of 0
The stock of Alpha Company has an expected return of 0.10 and a standard deviation of 0.25. The stock of Gamma Company has an expected return of 0.16 and a standard deviation of 0.40. The correlation coefficient between the two stocks' returns is 0.2. If a portfolio consists of 40% of Alpha Company and 60% of Gamma Company, what's the expected return of the portfolio?