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help with last question please The investor decides to diversify by investing $8,000 in Gryphon stock and $9,000 in Royal stock, which has an expected
help with last question please
The investor decides to diversify by investing $8,000 in Gryphon stock and $9,000 in Royal stock, which has an expected return of 9% and a standard deviation of 6.1%. The correlation coefficient for the two stocks' returns is 0.9. Calculate the expected return ar standard deviation of the portfolio. Round your answers to 2 decimal places. Enter your answers below. E(rp) = 7.66 Correct response: 7.66+0.01% Std. Dev. = 5.12 Correct response: 5.12+0.02% Suppose the investor decides to invest an additional $3,000 in a treasury bill yielding 1.5%. What will be the expected return and standard deviation of this portfolio. Round your answers to 2 decimal places. E(rp) = Number % Std. Dev. = Number %Step by Step Solution
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