Compute expected return and standard deviation of returns

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Reference no: EM132061353

You want to invest in two shares, X and Y. The following data are available for the two shares:

Share X

Expected Return: 9%

Standard Deviation :14%

Beta: 1.10

Share Y

Expected Return: 7%

Standard Deviation: 12%

Beta : 0.85

If you invest 70 percent of your funds in Share X, the remainder in Share Y and if the correlation of returns between X and Y is +0.7, compute the expected return and the standard deviation of returns from the portfolio.

Reference no: EM132061353

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