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The Standard Deviation of Returns on Warchester Shares Is 20

question 89

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The standard deviation of returns on Warchester shares is 20% and on Shoesbury shares it is 16%.The coefficient of correlation between the stocks is .75.The standard deviation of any portfolio combining the two stocks will be less than 20%.


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The expected levels of behavior or ethical practices required of a person or organization, particularly in a professional context.

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to increase in size, volume, quantity, or scope.

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The process of producing items from plastic materials through various methods such as molding, extrusion, or assembly.

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A type of corporation characterized by a limited number of shareholders, no public market for its shares, and often more informal management and operations.

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