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The Expected Return on ZV Next Year Is 12% with a Standard

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The expected return on ZV next year is 12% with a standard deviation of 20%.The expected return on TNA next year is 24% with a standard deviation of 30%.The correlation between the two shares is -.6.If Hannah makes equal investments in ZV and TNA, what is the standard deviation of her portfolio?


Definitions:

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising.

Consumption Spending

The expenditure by households on goods and services, excluding purchases of new housing, which is a key component in calculating a country's gross domestic product (GDP).

Permanent Tax

A tax implemented with no predetermined end date, often considered to be indefinitely applied.

Temporary Tax

A temporary tax is a levy imposed by a government for a specific period before it is automatically revoked or reassessed.

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