Compute the expected return and standard deviation

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Reference no: EM131993499

Question: Mark Harrywitz proposes to invest in two shares, X and Y. He expects a return of 12% from X and 8 % from Y. The standard deviation of returns are 8% for X and 5% for Y. The correlation coefficient between the returns is 0.2.

a. Compute the expected return and standard deviation of the following portfolios:

Portfolio Percent in X Percent in Y

1 50 50

2 25 75

3 75 25

Reference no: EM131993499

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