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A portfolio consists of two assets, the expected returns and standard deviations of returns of which are listed in the table below: Expected return Standard

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A portfolio consists of two assets, the expected returns and standard deviations of returns of which are listed in the table below: Expected return Standard deviation Asset 1 8% 16% Asset 2 10% 20% Required (a) Calculate: (i) The expected return for a portfolio which is equally weighted between the two assets. (i) The correlation coefficient for the two-asset portfolio, assuming that the covariance is 32. (ii) The variance of returns for the equally weighted portfolio, assuming a covariance of 32. (iv) The standard deviation of returns for the equally weighted portfolio

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