What is the expected return on portfolio composed

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Reference no: EM131308122

Security F has an expected return of 10.50 percent and a standard deviation of 43.50 percent per year. Security G has an expected return of 15.50 percent and a standard deviation of 62.50 percent per year.

A. What is the expected return on a portfolio composed of 35 percent of Security F and 65 percent of Security G? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

B. If the correlation between the returns of Security F and Security G is .30, what is the standard deviation of the portfolio described in part (a)? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM131308122

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