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Baullex Corp. has estimated the following joint probability distribution of returns for Lakeland Homes and Marriot Property: Scenarios Optimistic Probability 0.25 Lakeland (%) Marriot

 

Baullex Corp. has estimated the following joint probability distribution of returns for Lakeland Homes and Marriot Property: Scenarios Optimistic Probability 0.25 Lakeland (%) Marriot (%) 20 15 Most Likely Pessimistic 0.40 10 5 0.35 -10 0 On the basis of Baullex's estimates, calculate return and risk of the portfolio given the correlation in returns of both stocks is -0.82 and a similar distribution of weightage is given to both counters.

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