Stock X has an expected return of 13% and a standard deviation of 6%. Stock Y has an expected return of 11% and a standard deviation of 5%. You have decided to split your total investment by putting...

Stock X has an expected return of 13% and a standard deviation of 6%. Stock Y has an expected return of 11% and a standard deviation of 5%. You have decided to split your total investment by putting 40% in X and 60% in Y. If the returns have a covariance of -.0015, what is expected return and standard deviation of your portfolio?

What is the expected return of the portfolio (m_.4X+.6Y)

What is the standard deviation of the portfolio (s_.4X+.6Y)?

How does the standard deviation of the portfolio (s_.4X+.6Y) compare to the standard deviations of assets X and Y?

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Jun 05, 2022

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Stock X has an expected return of 13% and a standard deviation of 6%. Stock Y has an expected return of 11% and a standard deviation of 5%. You have decided to split your total investment by putting...

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