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What is the expected return of portfolio

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Reference no: EM132798422

Consider the following two stocks:

Stock Expected return Std. Dev.

A 15% 25%

B 10% 16%

Correlation between the two stocks is 0.4. You have $10000, of which you invest $7000 in stock A and the rest in stock B.

a) What is the expected return of your portfolio? (Format of the answer: 22.22 - in percent, but don't include % symbol, round to 2 digits.)

b) What is the standard deviation of your portfolio? (Format of the answer: 22.22 - in percent, but don't include % symbol, round to 2 digits.)

Reference no: EM132798422

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