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Stock X has an expected return of 10% and a standard deviation of 30%. Stock Y has an expected return of 14% and a standard deviation of 40%.

The correlation coefficient between Stocks And Y is 0.3.

Stock X has a beta of .9 and Stock Y has a beta of 1.20. Portfolio is invested 40% in Stock X and 60% in Stock Y.

Calculate the expected return of the portfolio.

Calculate the standard deviation of the portfolio.

Calculate the beta of the portfolio

Is your portfolio less risky or more risky than the market? Explain.

Will your portfolio likely outperform or underperform the market in a period when stocks are rapidly falling in value? Why?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92419267

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