Security F has an expected return of 10 percent and a standard deviation of 53 percent per

Question:

Security F has an expected return of 10 percent and a standard deviation of 53 percent per year. Security G has an expected return of 13 percent and a standard deviation of 79 percent per year.

a. What is the expected return on a portfolio composed of 40 percent of Security F and 60 percent of Security G?

b. If the correlation between the returns of Security F and Security G is .35, what is the standard deviation of the portfolio described in part (a)?

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... 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...

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