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An investor places 30% of his funds in security X and the balance in security in security Y. The expected returns and standard deviation of

  1. An investor places 30% of his funds in security X and the balance in security in security Y. The expected returns and standard deviation of returns are 12% and 20% for security X and 18% and 15% for security Y respectively.
    1. Calculate the expected return on the portfolio,
    2. Calculate the variance of returns on the portfolio assuming the correlation between the returns on securities as: i) +1.0; ii) +0.7; iii) 0.0; and iv) -0.7....... PLS SHOW ALL CALS

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