Given another investment with an expected value of 15 percent and a standard deviation of 2.7 percent that is counter cyclical to the investment in problem 1,what is the expected value of the portfolio and its standard deviation if both are combined into a portfolio with 55 percent invested in the first investment and 45 percent in the second? Assume the correlation coefficient (rij)is -.30.

Question

Quizplus · Accepted Answer

The Answer of Given another investment with an expected value of 15 percent and a standard deviation of 2.7 percent that is counter cyclical to the investment in problem 1,what is the expected value of the portfolio and its standard deviation if both are combined into a portfolio with 55 percent invested in the first investment and 45 percent in the second? Assume the correlation coefficient (rij)is -.30.

Given Another Investment with an Expected Value of 15 Percent