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Sagot :
Answer:
hope this helps but b or d
Explanation:
The Standard deviation of portfolio is between 0% and 30% as well as between 20% and 30%, as it is 24%.
What is portfolio?
The combination of various financial investments such as stocks, bond derivatives, cash and cash equivalents and any other securities in order to earn profit or achieve long term financial goal is called portfolio.
Given: asset 1 asset2
Expected return= 10% 15%
Standard deviation= 20% 30%
Correlation between two assets=1.0
To find the standard deviation of two assets
w1=X
w2=1-X
w1=SD of asset 2/SD of asset 1+ SD of asset 2
=0.3/0.2+0.3
=0.6
w2=1-0.6=0.4
Standard Deviation of Two asset=σP = √(w1² * σ1²+ w2² * σ2²+ 2 * w1 * w2 * σ1 * σ2 * ρ12)
Where:
σP = portfolio standard deviation
w1 = weight of asset 1 in the portfolio
w2 = weight of asset 2 in the portfolio
σ1 = standard deviation of asset 1
σ2 = standard deviation of asset 2; and
ρ12 = correlation of asset 1 and asset 2
σP = √(0.6)² * (0.2)² + (0.4)² *(0.3)² + 2*(0.6)*(0.4)*(0.2)*(0.3)*1
=0.24 or 24%
so it can be said that standard deviation is being between 0% and 30% as well as between 20% and 30%.
Therefore, option B and D aptly describes the statement.
Learn more about portfolio here:
https://brainly.com/question/10702105
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