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4. One of your clients has a portfolio equal to $60,000 and prefers to invest in only two stocks. She instructs you to sell short
4. One of your clients has a portfolio equal to $60,000 and prefers to invest in only two stocks. She instructs you to sell short $20,000 of American Express stock and to invest the proceeds from the short sale as well as the original portfolio amount in McDonalds stock. Calculate the expected return and standard deviation for this portfolio. (7 points) 4. One of your clients has a portfolio equal to $60,000 and prefers to invest in only two stocks. She instructs you to sell short $20,000 of American Express stock and to invest the proceeds from the short sale as well as the original portfolio amount in McDonalds stock. Calculate the expected return and standard deviation for this portfolio. (7 points)
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