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What is the expected rate of return of portfolio

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You have invested $25,000 in the stock of Bombardier, and $75,000 in the stock of Lululemon. The expected rate of return of Bombardier is 12%, and that of Lululemon is 7%. Bombardier stock has a standard deviation of 30%, while Lululemon stock has a standard deviation of 18%. The correlation between Bombardier and Lululemon is 0.2. What is the expected rate of return of your portfolio and what is the standard deviation of your portfolio?

Reference no: EM132705063

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