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Consider a portfolio comprised of asset p and asset q the

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Reference no: EM13482749

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: EM13482749

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