Katie's Portfolio ​ Katie Is Given the Following Information About the Returns

question 110

Essay

Katie's Portfolio
​ Katie is given the following information about the returns on two stocks: E(R₁)= 0.10,E(R₂)= 0.15,V(R₁)= 0.0225,and V(R₂)= 0.0441. ​ ​
-{Katie's Portfolio Narrative} Compute the variance of the portfolio composed of 60% stock 1,and 40% stock 2,if the coefficient of correlation is 0.40.

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Definitions:

Nonmotivating

Activities or stimuli that do not provoke interest, excitement, or drive in an individual.

Motives

The reasons or drives behind an individual's actions or behavior.

Deficiencies

Refers to the lack or shortage of something essential, including nutrients, resources, or qualities necessary for normal functioning and health.

Ideals

Principles or values that are actively pursued as goals or standards of perfection.