Consider Securities X and Y with the following estimates: E(RX) = 5% σX= 10% E(RY) = 15% σY = 25%. If the portfolio is comprise of 40% X and 60% Y and if the correlation between the returns on X and Y...


Consider Securities X and Y with the following estimates:
E(RX) = 5% σX= 10% E(RY) = 15% σY = 25%. If the portfolio

is comprise of 40% X and 60% Y and if the correlation

between the returns on X and Y is -0.25, what is the

portfolio’s expected return and risk?



Jun 07, 2022
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