Posted by: Pdfprep
Post Date: January 30, 2021
The expected return and standard deviations of stock A & B are:
Amit buys Rs.20,000 of Stock A and sells short Rs.10,000 of Stock B using all the Proceeds to buy more or Stock A. The correlation Between the two securities is .35.
What are the expected return & standard deviation of Amit’s portfolio?
A. 3.5%, 15.5%
B. 8.8%, 7.03%
C. 20%, 14.5%
D. 9.8%, 15.6%
Answer: C
Leave a Reply