(Answered) Question google and vodafone an investor is evaluating a

Accounting

Question: Google and Vodafone. An investor is evaluating a two-asset portfolio of the following securities:

Assumptions Expected Return Expected Risk(σ) Correlation(ρ)

Google(U.S.) 18.60% 22.80% 0.60

Vodafone(U.K.) 16.00% 24.00%

a. If the two securities have a correlation of +0.6, what is the expected risk and return for a portfolio that is equally weighted?

b. If the two securities have a correlation of +0.6, what is the expected risk and return for a portfolio that is 70% Google and 30% Vodafone?

c. If the two securities have a correlation of +0.6, what is the expected risk and return for a portfolio that has the minimum combined risk.

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