In: Finance
The Canadian Musician/Artist Aubrey Drake Graham, known by his
stage name “Drake “ has invested 70%...
The Canadian Musician/Artist Aubrey Drake Graham, known by his
stage name “Drake “ has invested 70% of his money in share A and
the remainder in share B. He assesses their prospects as
follows:
|
A
|
|
B
|
Expected return (%)
|
15
|
|
22
|
Standard deviation (%)
|
20
|
|
24
|
Correlation between returns
|
|
.4
|
|
|
- What are the expected return and standard deviation of returns
on this two share portfolio? (Do not round intermediate
calculations. Round your answers to 2 decimal places.
- How would your answer change if the correlation coefficient
were 1, 0 or –.4? (Round your answers to 2 decimal places.)? What
happens to the return and risk, as we change correlation
coefficients?
Provide details use timeline thanks!