What is the standard deviation of the portfolio described

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Reference no: EM131896633

Security F has an expected return of 10.3 percent and a standard deviation of 43.3 percent per year. Security G has an expected return of 15.3 percent and a standard deviation of 62.3 percent per year.

a. What is the expected return on a portfolio composed of 33 percent of Security F and 67 percent of Security G? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Expected return %

b. If the correlation between the returns of Security F and Security G is .28, what is the standard deviation of the portfolio described in part (a)? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Standard deviation %

Reference no: EM131896633

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