What is the standard deviation of the portfolio described

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Security F has an expected return of 11.40 percent and a standard deviation of 44.40 percent per year. Security G has an expected return of 16.40 percent and a standard deviation of 63.40 percent per year.

a. What is the expected return on a portfolio composed of 26 percent of Security F and 74 percent of Security G? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Expected return %

b. If the correlation between the returns of Security F and Security G is .21, what is the standard deviation of the portfolio described in part (a)? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Standard deviation %

Reference no: EM131609677

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