Portfolio Variance Use the following information to calculate the expected return and standard deviation of a portfolio that is 40 percent invested in 3 Doors, Inc., and 60 percent invested in Down Co.:
|
3 Doors, Inc. |
Down Co. |
||
|
Expected return, E ( R ) |
14% |
10% |
|
|
Standard deviation,σ |
42 |
31 |
|
|
Correlation |
0.15 |