Calculate the return and risk of a portfolio

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Reference no: EM133233449

The following are data for two securities:

Security

Expected return (%)

Standard deviation (%)

Stock

10

18.63

Bond

5

8.27

The correlation coefficient between the two securities is -48.55%.

Calculate the return and risk of a portfolio using the following weights:

Stock 40%, Bond 60%

Reference no: EM133233449

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