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Calculate the return on the portfolio

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Reference no: EM133070199

Given the following information:

  • Standard deviation for stock X = 8 percent
  • Standard deviation for stock Y = 17 percent 
  • Expected return for stock X = 9 percent 
  • Expected return for stock Y = 22 percent 
  • Correlation coefficient between X and Y = 0.50 

Calculate the return on the portfolio and the risk (Standard deviation) for a portfolio consisting of 40 percent invested in X and 60 percent invested in Y.

Reference no: EM133070199

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