What is the portfolios expected return

Reference no: EM13259942

Kings Auto Supplies is considering investing in the common stock of Hidalgo's and Atrium. The following date are available for these two securities:

Hidalgo's Atrium
Expected return 0.12 0.16
Standard deviation of returns 0.08 0.20

If she invests 30% of her funds in Hidalgo's and 70% in Atrium, and if the correlation of returns between these securities is +0.65, what is the portfolio's expected return and standard deviation?

Reference no: EM13259942

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