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A Portfolio Is Made Up of 75% of Stock 1,and

question 129

Essay

A portfolio is made up of 75% of stock 1,and 25% of stock 2. Stock 1 has a variance of .08,and stock 2 has a variance of .035. The covariance between the stocks is -.001. Calculate both the variance and the standard deviation of the portfolio.


Definitions:

Greek Philosophers

Thinkers from ancient Greece who are known for their foundational contributions to philosophy, including ethics, metaphysics, and logic.

Concept

An abstract idea or a general notion that represents understanding, thought, or a complex element of something.

Inequality

The unequal distribution of resources, rights, and opportunities among individuals or groups in society.

Benefit

An advantage or profit gained from something.

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