In: Finance
The expected return and standard deviation of a portfolio that is 70 percent invested in 3 Doors, Inc., and 30 percent invested in Down Co. are the following: |
3 Doors, Inc. | Down Co. | |||||
Expected return, E(R) | 12 | % | 10 | % | ||
Standard deviation, σ | 45 | 34 | ||||
What is the standard deviation if the correlation is +1? 0? −1? |