Stock has annual return mean and standard deviation

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Reference no: EM13913102

Tyler Trucks stock has an annual return mean and standard deviation of 12.0 percent and 41 percent, respectively. Michael Moped Manufacturing stock has an annual return mean and standard deviation of 23.0 percent and 67 percent, respectively. Your portfolio allocates equal funds to Tyler Trucks stock and Michael Moped Manufacturing stock. The return correlation between Tyler Trucks and Michael Moped Manufacturing is –.5. What is the smallest expected loss for your portfolio in the coming month with a probability of 1.0 percent?

Reference no: EM13913102

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