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Portfolio Management Reading 39: Portfolio Risk & return Part 1

EOC Question 9

Could someone tell me how to solve this in a simpler manner if possible, would greatly appreciate it. 

Thanks

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Their answer is as simple as possible.  Anything else is more complicated.

Here’s the algebra:

σ2port = w12σ12 + w22σ22 + 2w1w2σ1σ2ρ

σ2portw12σ12w22σ22 = 2w1w2σ1σ2ρ

ρ = (σ2portw12σ12w22σ22) / (2w1w2σ1σ2)

Simplify the complicated side; don't complify the simplicated side.

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Thank you, appreciate it. I was able to solve it dong the algebra.

So was I.

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams
http://financialexamhelp123.com/