What expected return on portfolio composed of thirt percent

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Security F has an expected return of 12.0 percent and a standard deviation of 13 percent per year. Security G has an expected return of 18.6 percent and a standard deviation of 38 percent per year.

Problem a. What is the expected return on a portfolio composed of 30 percent of security F and 70 percent of security G?

Problem b. If the correlation between the returns of security F and security G is 0.50, what is the standard deviation of the portfolio described in part (a)?

Reference no: EM132935654

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