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GIVEN , Asset 1 : EIRI) = 0. 12 ASSET 2: ElRX) = 0. 15 E /0 1 ) = 0.04 E ( 1 2
GIVEN , Asset 1 : EIRI) = 0. 12 ASSET 2: ElRX) = 0. 15 E /0 1 ) = 0.04 E ( 1 2 ) = 0. 06 Calculate the expected returns and Expected standard deviations of a two stock portfolio having a correlation coefficient of 0. 70 under the following conditions . Q. W,= 1.00 6. W .= 0. 75 [. WE' 0. 50 J. W .= 0. 25 E. W.= 0.05 Plot the results on a return - risk graph . Without calculations , draw in what the curve would look like first if the correlation coefficient had been 0. 00 and then if it had been - 0.70
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