Question
A portfolio combines two assets: X and Y. The proportion of Asset X in the portfolio is 70%, and the proportion of Asset Y is
A portfolio combines two assets: X and Y. The proportion of Asset X in the portfolio is 70%, and the proportion of Asset Y is 30%. The standard deviation of return of Asset X is 21% and 8% for Asset Y. Returns of Asset X and Asset Y are positively correlated as far as the correlation coefficient equals 0.347. The answer should have 3 decimals and be in percentage.
Please show your work.
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Empirical Finance
Authors: Sardar M. N. Islam, Sethapong Watanapalachaikul
1st Edition
3790815519, 978-3790815511
