Assume that you have half of your money invested in Times Mirror, the media company, and the

Question:

Assume that you have half of your money invested in Times Mirror, the media company, and the other half invested in Unilever, the consumer product giant. The expected returns and standard deviations on the two investments are summarized below:

Estimate the variance of the portfolio as a function of the correlation coefficient (start with ˆ’1 and increase the correlation to +1 in 0.2 increments).

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...