Katie's Portfolio
Katie is given the following information about the returns on two stocks: E(R 1 )= 0.10,E(R 2 )= 0.15,V(R 1 )= 0.0225,and V(R 2 )= 0.0441.
-{Katie's Portfolio Narrative} Compute the variance of the portfolio composed of 30% stock 1 and 70% stock 2,if the coefficient of correlation is 0.40.

Question

Katie's Portfolio 
​ Katie is given the following information about the returns on two stocks: E(R 1 )= 0.10,E(R 2 )= 0.15,V(R 1 )= 0.0225,and V(R 2 )= 0.0441. ​ ​
-{Katie's Portfolio Narrative} Compute the variance of the portfolio composed of 30% stock 1 and 70% stock 2,if the coefficient of correlation is 0.40.

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The Answer of  Katie's Portfolio 
​ Katie is given the following information about the returns on two stocks: E(R 1 )= 0.10,E(R 2 )= 0.15,V(R 1 )= 0.0225,and V(R 2 )= 0.0441. ​ ​
-{Katie's Portfolio Narrative} Compute the variance of the portfolio composed of 30% stock 1 and 70% stock 2,if the coefficient of correlation is 0.40.

Katie's Portfolio ​ Katie Is Given the Following Information About the Returns

Katie's Portfolio Katie Is Given the Following Information About the Returns