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Compute portfolio return and portfolio risk

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Reference no: EM133003232

You are considering two assets with the following characteristics

Expected Return of each asset Volatility of each asset Weights

0.15 0.10 0.5

0.20 0.20 0.5

1) Compute portfolio return and portfolio risk with the following correlation coefficients:

correlation coefficient = 0.40

correlation coefficient = -0.60

2) Plot the two portfolios on a risk-return graph and briefly explain the results

Reference no: EM133003232

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