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4. A. Find the expected return for the following portfolio. Expected Return Betas % invested Standard Deviation Stock A 15% 1.40 60% 13% Stock B
4. A. Find the expected return for the following portfolio. Expected Return Betas % invested Standard Deviation Stock A 15% 1.40 60% 13% Stock B 18% 2.20 40% 18% Correlation Coefficient of A & B = .7 b. Find the Required Return for the portfolio if the risk free rate is 6% and the market return is 12% (use the SML equation). c. Is the portfolio a buy or sell? d. Find the standard deviation of the portfolio.
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