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  1. #1
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    Finance...portfolio std dev

    How would this be calculated?

    You have two stocks in your portfolio. You have $150,000 invested in "A" and $250,000 invested in "B". The standard deviation of "A" is 25% and "B" is 20%. The correlation between them is .75. What is the portfolio standard deviation?


    Last edited by 2forISU; 02-24-2011 at 07:37 AM.

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    Re: Finance...Portfolio STD

    Quote Originally Posted by 2forISU View Post
    How would this be calculated?

    You have two stocks in your portfolio. You have $150,000 invested in "A" and $250,000 invested in "B". The standard deviation of "A" is 25% and "B" is 20%. The correlation between them is .75. What is the portfolio standard deviation?
    Std Dev stock a(weight of stock a) + std dev b(weight stock b)



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    Re: Finance...Portfolio STD

    I didn't think you could get an STD from sitting on a portfolio


    "Me not winning isn't important. You do!"

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    Re: Finance...Portfolio STD

    Quote Originally Posted by Cyclone711 View Post
    Std Dev stock a(weight of stock a) + std dev b(weight stock b)
    (weight of stock a)+(weight of stock b)...?

    correlation of .75?



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    Re: Finance...Portfolio STD

    Quote Originally Posted by Naughtius View Post
    I didn't think you could get an STD from sitting on a portfolio
    Only from a tractor, and honestly I checked this thread to see how long it would take for a joke like that, and here I am adding to it.



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    Re: Finance...Portfolio STD

    Quote Originally Posted by LindenCy View Post
    Only from a tractor, and honestly I checked this thread to see how long it would take for a joke like that, and here I am adding to it.
    LET ME TRACTOR INFECT!


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    Re: Finance...Portfolio STD

    Quote Originally Posted by 2forISU View Post
    How would this be calculated?

    You have two stocks in your portfolio. You have $150,000 invested in "A" and $250,000 invested in "B". The standard deviation of "A" is 25% and "B" is 20%. The correlation between them is .75. What is the portfolio standard deviation?
    You have a STD portfolio? Someone needs to lay off the hookers and cocaine.



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    Re: Finance...Portfolio STD



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