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What is the expected return of the resulting portfolio

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Reference no: EM133121787

Question - The following table of information has been provided to assist in answering this question:

 

Security X

Security Y

Security Z

Expected Return

0.15

0.25

0.05

Standard Deviation

0.06

0.2

0.13

Beta

0.95

1.08

0.89

Your client is intending to invest 35% of their capital in Security X and the rest of their capital in Security Z. The correlation of returns between these two securities is 0.66. What is the expected return of the resulting portfolio?

Reference no: EM133121787

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