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Consider a portfolio consisting of $100,000 worth of Stock A and $300,000 worth of Stock B....

Consider a portfolio consisting of $100,000 worth of Stock A and $300,000 worth of Stock B. The standard deviations of the portfolio’s, Stock A’s, and Stock B’s returns are σp = 8.4%, σA = 8.0%, and σB = 9.7% respectively. Calculate the correlation coefficient ρA,B between rA and rB . State your answer with 4 digits after the decimal point.

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jeff jeffy answered 2 years ago
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