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linv08 linv08
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A month ago
Suppose you plan to create a portfolio with three securities: Dizzy (D), Lazy (L), and Crazy (C). The expected returns for Dizzy, Lazy and Crazy are 6.0%, 8.0%, and 10.0%, respectively. The standard deviation is 9.0% for Dizzy, 15.0% for Lazy, and 12.0% for Crazy. The correlation coefficients among the returns for the three securities are: CORRDL= 0.6, CORRDC = -0.3, and CORRLC = 0.4. What is the portfolio standard deviation if 30.0% of the portfolio is in Dizzy and 10.0% is in Lazy?

▸ 0.34%

▸ 5.82%

▸ 0.87%

▸ 9.33%
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Corporate Finance

Corporate Finance


Edition: 5th
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BAGrinderBAGrinder
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this is exactly what I needed
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This site is awesome
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Helped a lot
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