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Annual Returns T B, % D, % 1 18.23% 12.43% 2 18.24% 13.45% 3 14.71% 4.32% 4 -6.56% -8.54% 5 9.12% 12.21% 1. You decide
T | B, % | D, % |
1 | 18.23% | 12.43% |
2 | 18.24% | 13.45% |
3 | 14.71% | 4.32% |
4 | -6.56% | -8.54% |
5 | 9.12% | 12.21% |
1. You decide to create a two-stock portfolio of stocks B and D. Calculate the correlation between the two stocks and the standard deviation of each stock. Use this information to determine the expected return and standard of the minimum variance portfolio between the two securities.(show the work please)
2. Calculate the portfolio standard deviaion if you put 30% of your money in B and 70% in D.(show your work please)
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