What is the correlation coefficient between x and y

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Using the standard deviation of returns as a proxy for the total risk, by how much would the total risk change if you hold either stock X or Y separately versus holding a portfolio of XY that consists of 60% in X and the remainder in Y ? What is the correlation coefficient between X and Y ? If there is or there is not any changes, make sure to explain the financial (not the mathematical) logic behind it? (hint: think about portfolio risk).
Year X Y
2007 40.00% 40.00%
2008 -10.00% 35.00%
2009 35.00% -10.00%

Average return = 21.67% 21.67%
Standard deviation = 27.54% 27.54%

 

Reference no: EM13288661

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