The Stock Market of Country a Has an Expected Return

question 58

Essay

The stock market of country A has an expected return of 5 percent,and a standard deviation of expected return of 8 percent.The stock market of country B has an expected return of 15 percent and a standard deviation of expected return of 10 percent.
Calculate the expected return of a portfolio that is half invested in A and half in B.

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Definitions:

Notation

A system of symbols and abbreviations used to represent concepts, quantities, or operations, especially in mathematics and sciences.

Race

A categorization of humans based on shared physical or social qualities into groups generally viewed as distinct within a given society.

Crime Level

Refers to the amount of criminal activity within a specified area and time period.

Null Hypothesis

A default statement that there is no effect or no difference, used as a starting point for statistical testing.