Available to you are the following investments: JPM 15% 23% ER) S EL 13% 20% GPN 18% 25% RF 3.00% S&P 10% 12% 11 a. You are considering investing in JPM and EL two stocks with a correlation of 0.28 to achieve a return of 14.2% Create the portfolio and calculate the standard deviation of your portfolio. 21. . b. Add GPN to create a minimum risk portfolio. The correlation between GPN and the portfolio created in (a) is 0.4.Calculate the E(R) and Standard Deviation of this new portfolio .. 31 c. You would like to reduce your overall portfolio risk by diversifying your investment with Treasuries. Invest in treasuries to reduce your overall risk by 10%. Calculate the expected return and standard deviation of your portfolio. Available to you are the following investments: JPM 15% 23% ER) S EL 13% 20% GPN 18% 25% RF 3.00% S&P 10% 12% 11 a. You are considering investing in JPM and EL two stocks with a correlation of 0.28 to achieve a return of 14.2% Create the portfolio and calculate the standard deviation of your portfolio. 21. . b. Add GPN to create a minimum risk portfolio. The correlation between GPN and the portfolio created in (a) is 0.4.Calculate the E(R) and Standard Deviation of this new portfolio .. 31 c. You would like to reduce your overall portfolio risk by diversifying your investment with Treasuries. Invest in treasuries to reduce your overall risk by 10%. Calculate the expected return and standard deviation of your portfolio