You are going to invest in the following portfolio: A and B A B Expected return...

You are going to invest in the following portfolio:

A and B A B

Expected return 12% 9%

Standard deviation of returns 6% 3%

Beta 1.2 .8

If you invest 75% in security A and they have a +0.35 correlation of returns, find;

a. The expected return from the portfolio; and

b. The standard deviation of returns from the portfolio.

Expert Solution

Answer :

jeff jeffy answered 2 months ago

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