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A Portfolio Consists of Two Stocks with Stock a Having

question 30

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A portfolio consists of two stocks with Stock A having a weight of 64 percent.Stock A has a standard deviation of 21.22 percent.Stock B has a standard deviation of 16.44 percent.The stocks have a covariance of -.027.What is the portfolio variance?


Definitions:

Government Owns

A situation where assets, enterprises, or other resources are owned and controlled by the government rather than by private individuals or organizations.

Laissez Fair Capitalism

An economic system where private parties are free from government intervention in their economic decisions.

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