Solution-Consider a portfolio comprised of asset p and

Consider a portfolio comprised of asset p and asset q the

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Reference no: EM13567723

Consider a portfolio comprised of Asset P and Asset Q. The expected return on Asset P is 10% and the standard deviation is 6%. The expected return on Asset Q is 12% and the standard deviation is 8%.

The correlation between the returns on these two assets is 0.500. Complete the following table.

Proportion	Proportion		Covariance
of Portfolio	of Portfolio		Between		Portfolio
Invested in	Invested in	Portfolio	Returns on	Portfolio	Standard
Asset P	Asset Q	Return	Assets P and Q	Variance	Deviation
100%	0%	______	____________	_______	_______
0%	100%	______	____________	_______	_______
50%	50%	______	____________	_______	_______
25%	75%	______	____________	_______	_______
75%	25%	______	____________	_______	_______

Reference no: EM13567723

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Consider a portfolio comprised of asset p and asset q the

Reference no: EM13567723

Reference no: EM13567723

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