Find the expected return and the standard deviation

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Reference no: EM1360824

Share A has an expected return of 15% and standard deviation of 14%. Share B has an expected return of 23% and a standard deviation of 18%. Correlation between Share A & B is 0.3

Share A has 30% invested and Share B has 70%.

(a) What is the expected return and the standard deviation of return on the portfolio?

(b) Recalculate the expected return and the standard deviation where the correlation between the returns is -0.4 and 1.0 respectively.

Reference no: EM1360824

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