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14 August, 15:04

Suppose you invest 60% of your portfolio in campbell soup and 40% in boeing. the expected dollar return on your campbell soup stock is 3.1% and on boeing is 9.5%. the standard deviations of their annualized daily returns are 15.8% and 23.7%, respectively. assume a correlation coefficient of zero, calculate the portfolio standard deviation.

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  1. 14 August, 18:41
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    Boeing stock has increased to about 41.4% while Campbell soup has decreased to about 58.5%. This is because Boeing's rate of return was significantly higher than Campbell's soup, therefore with the returns added in, the portion of the portfolio that is invested in Boeing has increased.
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