Jagannath University Department of Management Studies 2nd Mid Term Examination Course Code and Name: 3103: Investment Analysis and Portfolio Management Time-40 Minutes Answer the following three questions. Total Mark 10 1. Discuss the impact of covariance or correlation between securities in a portfolio on the 4.0 portfolio risk. 2. Novex owns a portfolio of two securities with the following expected returns, standard 6.0 deviations and weights: Security X Y Expected Return 12% 15% Standard Deviation 15% 20% Weight 0.40 0.60 What are the maximum and minimum portfolio standard deviations for varying of correlation between two securities? ---0--