If you have 2 assets: A has an expected return of 10% and has a standard deviation of 25%, B has an expected return of 8% and a standard deviation of 25%. For a portfolio with 1/2 weight in each of the 2 assets, what correlation between the assets would make the portfolio standard deviation 25% (the same as each asset indovidually)?
Can you provide the equation and walk me through the steps?
Am I calculating the Sharpe ratio? I don't understand what it's asking?