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Question
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 24%, while stock B has a standard deviation of return of 18%. Stock A comprises 60% of the portfolio, while stock B comprises 40% of the portfolio. If the variance of return on the portfolio is .0380, the correlation coefficient between the returns on A and B is ________.
A) .583
B) .225
C) .327
D) .128
Answer
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Related questions
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Day
1 2 3 4 Advances
870 760 960 840 Declines
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Q:
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Q:
In a defined contribution pension plan, the ________ bears all of the fund's investment performance risk.
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Q:
When life insurance companies seek long term investments, they are focusing on________.
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Q:
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A) determine security selection of each portfolio operated by the investment company
B) translate the objectives and constraints of the investment company into an asset universe
C) determine the percentages of each security in the total investment company portfolio
D) calculate and report the overall rate of return to investment company constituents