Find the standard deviation ofthisportfolios return

Reference no: EM13337893

Suppose you have $50,000 that you would like to invest in twocompanies. Bethlehem Books and Allentown Audio. Bethlehem has arate of return of 10% and standard deviation 15%. While Allentownhas a return of 15% with a standard deviation of 20%. Thecorrelation coefficient between them is .5. Your portfolio shouldhave a return of 12%. Find the standard deviation ofthisportfolio’s return.

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Reference no: EM13337893

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