Standard Deviation of Expected Return of a Portfolio Assignment | Homework For You
May 21st, 2020
The stock market of country A has an expected return of 5 percent, and a standard deviation of expected return of 8 percent. The stock market of country B has an expected return of 15 percent and a standard deviation of expected return of 10 percent. Assume that the correlation of expected return between country A and B is 0.2

Calculate the standard deviation of expected return of a portfolio that has half of its money invested in A and half in B.
Explain what would reduce the standard deviation and hence risk of the two country portfolio even further. Get Finance homework help today
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