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A college student owns two securities: TIMBA and SIMBA. TIMBA has an expected return of 15 percent with a standard deviation of those returns being
A college student owns two securities: TIMBA and SIMBA. TIMBA has an expected return of 15 percent with a standard deviation of those returns being 11 percent. SIMBA has an expected return of 12 percent, and a standard deviation of 7 percent. The correlation of returns between TIMBA and SIMBA is 0.81. If the portfolio consists of $6,000(60%) in SIMBA and $ 4,000 (40%)in TIMBA ,
A- what is the expected return of protfolio returns ?
B- what is the expected standard deviation of portfolio returns?
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