Two assets exhibit the following return characteristics:
Variance of returns for Asset 1: 0.05
Variance of returns for Asset 2: 0.06
Correlation of returns between Asset 1 and Asset 2: 0.75
The variance of returns for an equally weighted portfolio of these two assets is closest to:
Exam-Like
A
0.038
B
0.048
C
0.055
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Two assets exhibit the following return characteristics:
- Variance of returns for Asset 1: 0.05
- Variance of returns for Asset 2: 0.06
- Correlation of returns between Asset 1 and Asset 2: 0.75
The variance of returns for an equally weighted portfolio of these two assets is closest to: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz
