Business, 29.03.2021 18:10 KOAL

The following are estimates for two stocks. Stock Expected Return Beta firm-specific Standard Deviation A 0.13 0.79 0.3 B 0.23 1.22 0.37 The market index has a standard deviation of 0.2 and the risk-free rate is 0.01. Suppose that we were to construct a portfolio with proportions: Stock A 0.31 Stock B 0.42 The remaining proportion is invested in T-bills. Compute the standard deviation of the portfolio. Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.

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The following are estimates for two stocks. Stock Expected Return Beta firm-specific Standard Deviat...

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