Expected return-standard deviation of return for portfolio

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Reference no: EM131983094

Table 1

Expected return Stock X 14% Stock Y 18%

Standard deviation Stock X 30% Stock Y 54%

Beta Stock X 1.20 Stock Y 1.50

Correlation (X,Y)=0.3

1. Please use the information from Table 1

1. What are the expected return and standard deviation of return for a portfolio with 40% invested in X and 60% invested in Y? (show your work)

2. What is the beta for a portfolio with 70% invested in X and 30% invested in Y? (show your work)

3. What is the covariance between Stock X and Stock Y? (show your work)

Reference no: EM131983094

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