An investor forms a portfolio of two stocks, Alpha and Beta. Information regarding the two stocks is shown below: Stock Expected Return Standard Deviation Alpha 6% 25% Bravo 8% 30% The correlation between returns on Alpha and Bravo is 0.30. The investor will put 40% of her wealth in Alpha and the 60% of her wealth in Bravo. What is the expected return on the investor's portfolio? 14.00% None are correct 7.85% 7.20% 4

The correlation between returns on Alpha and thawo is 030 The knestor wili put 40 of of her wealth in Alpha and the dox of her wecalth in firavo. What is the expected return on the invevtor's portfolio? 1400% None are currect 7.85K 720x