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Problem:

Two securities have the following expected returns: X=15% AND Y=22%

Required:

Question 1: Calculate expeted return for a portfolio consisting of securities X and Y if the portfolio is weighted 40% X and 60% Y

Question 2: Assume the standard deviation for the security X is 12% and for security Y is 18%.The correlation coeeficient for XY=+.7. Calculate standard deviation for the portfolio containing securities X and Y

Note: Provide support for your rationale.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162130

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