Abby can purchase a secondary data to report for $500 or create primary data by surveying 300 people at a cost of $1.33 person.
2 answers:
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Answer:
For correlation 1 the standard deviation of portfolio is 0.433.
For correlation 0 the standard deviation of portfolio is 0.3191.
For correlation -1 the standard deviation of portfolio is 0.127.
Explanation:
The standard deviation of a portfolio is computed using the formula:
(1)
For <em>r</em> = + 1 compute the standard deviation of portfolio as follows:
Thus, for correlation 1 the standard deviation of portfolio is 0.433.
(2)
For <em>r</em> = 0 compute the standard deviation of portfolio as follows:
Thus, for correlation 0 the standard deviation of portfolio is 0.3191.
(3)
For <em>r</em> = -1 compute the standard deviation of portfolio as follows:
Thus, for correlation -1 the standard deviation of portfolio is 0.127.
Answer:
Please see attachment
Explanation:
Please see attachment
