What would be the expected risk on mr jones portfolio

Reference no: EM131245917

Mr. Jones has a 2-stock portfolio with a total value of $400,000. $300,000 in invested in Stock A and the remainder is invested in Stock B.

If standard deviation of Stock A is 12.65%, Stock B is 21.55%, and correlation between Stock A and Stock B is 0.5, what would be the expected risk on Mr. Jones' portfolio (standard deviation of the portfolio return)?

Reference no: EM131245917

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