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1) Two assets' correlation is 0. The first has expected return of 9% and standard deviation...

1) Two assets' correlation is 0. The first has expected return of 9% and standard deviation of 16%, the second has expected return of 13% and standard deviation of 20%. Calculate the minimum amount of risk (standard deviation) you'll need to take if investing in these two assets. (Provide your answer in percent rounded to two decimals omitting the % sign)

2) You are creating a portfolio of two stocks. The first stock has standard deviation of 22% , the second has standard deviation of 33% and the two stocks' correlation is 0.6. Calculate the standard deviation of a portfolio that is invested 40% into the first and 60% into the second stock. (Provide your answer in percent rounded to two decimals, omitting the % sign.)

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 11 months ago
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