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Question 1: There are two stocks in the portfolio of Mr. N, Stock A and Stock B. the information of this portfolio is as follows:
Calculate the expected rate of return on this portfolio assuming that Stock A consists of 75% of the total funds invested in the stocks and the remainder in Stock B.
| Common stock | Expected rate of return | Standard deviation |
| Stock A | 15% | 10% |
| Stock B | 20% | 15% |
Calculate the expected rate of return on this portfolio assuming that Stock A consists of 75% of the total funds invested in the stocks and the remainder in Stock B.
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