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Elizabeth's Portfolio ​ Elizabeth Has Decided to Form a Portfolio by Putting

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Elizabeth's Portfolio
​ Elizabeth has decided to form a portfolio by putting 30% of her money into stock 1 and 70% into stock 2.She assumes that the expected returns will be 10% and 18%,respectively,and that the standard deviations will be 15% and 24%,respectively. ​ ​
-{Elizabeth's Portfolio Narrative} Compute the standard deviation of the returns on the portfolio assuming that the two stocks' returns are uncorrelated.


Definitions:

Education Fund

A savings or investment account set aside for educational expenses, often with tax advantages, to support an individual's future education costs.

Total Value

The combined market value or monetary worth of all assets, goods, services, or obligations.

Compounded Annually

The method of computing interest that includes both the original amount of money invested and the interest that has been added over previous years, done annually.

Return

The income generated from an investment, often expressed as a percentage of the invested capital.

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