What''s the expected return of the portfolio

Reference no: EM131013723

The stock of Alpha Company has an expected return of 0.10 and a standard deviation of 0.25. The stock of Gamma Company has an expected return of 0.16 and a standard deviation of 0.40. The correlation coefficient between the two stock's return is 0.2. If a portfolio consists of 40% of Alpha Company and 60% of Gamma Company, what's the expected return of the portfolio?

Reference no: EM131013723

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