Question

Stock A has a standard deviation of 22% and an expected return of 12%. Stock B...

Stock A has a standard deviation of 22% and an expected return of 12%. Stock B has a standard deviation of 25% and an expected return of 10%. Jami's fund is a simple investment product that consists of 40% Stock A and 60% Stock B. Calculate the expected return of Jami's fund. Choose the best answer.

a.

13.2%
b.

8.6%
c.

11.2%
d.

11.6%
e.

10.8%
f.

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Answer #1

Ans is e. 10.8%

Calculations-

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