Consider the following information about 2 shares P and Q Share Expected return (yearly) &nbs

Consider the following information about 2 shares P and Q

Share Expected return (yearly) Risk (standard deviation)

P 8% 7%

Q 20% 16%

The correlation coefficient between shares P and Q is 0.3

Required: Estimate the risk and expected return of a portfolio comprising 30% of share P and 70% of share Q and show your workings

Expert Solution

jeff jeffy answered 1 year ago

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