Eric Poppovich invests money in two stocks for the upcoming year. His investment is shown below:...

Eric Poppovich invests money in two stocks for the upcoming year. His investment is shown below:

STOCK:	# of shares	Price Per Share	Expected Return	Standard Deviation
LBJ Corporation (A)	49.00	$38.43	5.00%	18.00%
Duncan Inc. (B)	20.00	$50.74	10.00%	21.00%

The correlation between LBJ and Duncan is 0.50.

What is the expected return for the portfolio in the coming year?

What is the standard deviation of the portfolio?

Answer Format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

Expert Solution

jeff jeffy answered 1 year ago

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