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You have the following information on two securities in which you have invested:

Security	Expected Return	Standard Deviation	Beta	Percent Invested(w)
Xerox	15%	4.5%	1.20	35%
Kodak	12%	3.8%	0.98	65%

a. Which stock is riskier in a portfolio context? Which stock is riskier if you are considering them as individual assets (not part of a portfolio)?

b. Compute the expected return on the portfolio.

c. If the securities have a correlation of +0.60, compute the standard deviation of the portfolio.

d. Compute the beta of the portfolio.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92092316

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