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An Investor has invested 60 % of his money in security A and 40% in security B. calculate the expected return and expected risk of
An Investor has invested 60 % of his money in security A and 40% in security B. calculate the expected return and expected risk of his portfolio if the details of security A and B is given below:
Probability | Return(%) | |
A | B | |
0.2 | 15% | 15% |
0.3 | 20% | 25% |
0.2 | -10% | 5% |
0.3 | 30% | 20% |
If correlation coefficient between A and B is a) r = 1, b) r = -1
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