What is expected return of the portfolio for grameenphone

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You are creating a portfolio consisting of 2 stocks only, Dulamia Cotton and GrameenPhone. You are investing $2,000 in Dulamia Cotton and $3,000 in GrameenPhone. Given that the expected return of Dulamia Cotton is 9% and the expected return from GrameenPhone 8% respectively.

Problem a) What is the expected return of your portfolio? Given also that the expected standard deviations of Dulamia Cotton and GrameenPhone are 13.15% and 11.65% respectively.

Problem b) What is the standard deviation of the portfolio, given that the correlation coefficient between the two stocks is 0.75.?

Reference no: EM132943578

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