The Stock Market of Country a Has an Expected Return

question 97

Essay

The stock market of country A has an expected return of 8 percent,and standard deviation of expected return of 5 percent.The stock market of country B has an expected return of 16 percent and standard deviation of expected return of 10 percent.
Assume that the correlation of expected return between A and B is negative 1.Calculate the standard deviation of expected return of the portfolio in the last question.

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Definitions:

Exceeded

To go beyond an established limit or standard.

More Than One Vendor

Utilizing services or products from multiple suppliers or companies instead of relying on a single source.

Estimate Cost

The process of forecasting the financial expenditure required to complete a project or produce a good.

Selection Phase

The stage in a project or procurement process where options are evaluated and choices are made regarding resources, suppliers, or methods.