View the step-by-step solution to:

# Bob has a \$50000 stock portfolio with a beta of 1.2, an expected return of 10.8%, and a standard deviation of 25%. Becky also has a \$50000 portfolio,...

Bob has a \$50000 stock portfolio with a beta of 1.2, an expected return of 10.8%, and a standard deviation of 25%. Becky also has a \$50000 portfolio, but it has a beta of 0.8, an expected return of 9.2%, and a standard deviation that is also 25%. the correlation coefficient, r, between Bob's and Becky's portfolios is zero. If Bob and Becky marry and combine their protfolios, which of the following best describes their combined \$100,000 portfolio?

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

### -

Educational Resources
• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents