Problem 8-06, Ebenezer Scrooge Invests in A & B
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
Given the percent invested in stock along with the expected return and standard deviation for both stocks and ask you to find the standard deviation and expected return for the portfolio. Then they ask how it would change with different correlations and whether the investor is better off investing in the portfolio as opposed to just stock A.
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Your numbers will vary.