What Role Does the Standard Deviations of Two Assets Play

question 73

Essay

What role does the standard deviations of two assets play in computation of the expected return of the two asset portfolio?

---

Definitions:

International Conglomerate

A large corporation that operates in various industries and is composed of companies located in multiple countries.

Foreign Corporation

A business entity that is registered in a country or jurisdiction different from where it primarily conducts its operations.

Supervisory Board

A group elected to oversee the management of an organization and make significant decisions on its behalf.

Corporate Structure

The organizational framework of a company, detailing the roles, responsibilities, and hierarchy within the organization.