Your portfolio consists of two securities: Transcomm and MidCap. The expected return for Transcomm is 16.1 percent, while for MidCap it is 6.1 percent. The standard deviation is 7.1 percent for Transcomm and 21.1 percent for MidCap. Assume 30 percent of the portfolio is invested in Transcomm. Calculate the portfolio standard deviation if the correlation between the stocks is 0.80. (Round intermediate calculations to 6 decimal places, e.g. 0.251254 and the final answer to 2 decimal places, e.g. 15.25%.) Portfolio standard deviation %

Your portfolio consists of two securities: Transcomm and MidCap. The expected return for Transcomm is 16.1 percent, while for MidCap it is 6.1 percent. The standard deviation is 7.1 percent for Transcomm and 21.1 percent for MidCap. Assume 30 percent of the portfolio is invested in Transcomm. Calculate the portfolio standard deviation if the correlation between the stocks is 0.80. (Round intermediate calculations to 6 decimal places, e.g. 0.251254 and the final answer to 2 decimal places, e.g. 15.25%.) Portfolio standard deviation %

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 6P

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