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In: Statistics and Probability

Suppose that you want to create a portfolio that consists of stock X and stock Y....

Suppose that you want to create a portfolio that consists of stock X and stock Y. For a​ $1,000 investment, the expected return for stock X is $ 71 and the expected return for stock Y is $ 102. The variance for stock X is 2,700 and the variance for stock Y is 8,625. The covariance of stock X and stock Y is 5,976.

Complete parts​ (a) through​ (c).

a.) Compute the portfolio expected return and portfolio risk if the percentage invested in stock X is 30 %.

b.) Compute the portfolio expected return and portfolio risk if the percentage invested in stock X is 50 %.

c.)Compute the portfolio expected return and portfolio risk if the percentage invested in stock X is 80 %.

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orchestra answered 1 year ago
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