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

question 240

Essay

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 coefficient of correlation is 0.5.

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Definitions:

Biceps Brachii

A muscle located in the upper arm that is responsible for flexing the forearm at the elbow.

Triceps Brachii

A large muscle on the back of the upper arm responsible for extending the elbow and is composed of three heads.

Tensor Fascia Latae

A muscle of the thigh that helps to stabilize and move the hip and knee, and is involved in the iliotibial band.

Iliopsoas

A major hip flexor muscle group that is composed of the iliacus and psoas major muscles, playing a key role in lifting the thigh and stabilizing the pelvis.