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3) An investor has 800 000 TL to invest. He invests 600 000 TL in stock A which has variance of %12,5 and expected return
3) An investor has 800 000 TL to invest. He invests 600 000 TL in stock A which has variance of %12,5 and expected return of 0.25. He considers to invest the rest in Stock B. Stock B has variance of %25 and expected return 0,6. The correlation coefficient between A and B is 0,45. a) Calculate the expected return and standard deviation of a portfolio that includes A and B stocks. b) Is there a way to reduce systematic risk of this portfolio? If, explain briefly
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