Kagera Company has made a portfolio of these three securities:

The correlation coefficient between Kasai and Limpopo is 0.6. If the returns are normally distributed, find the probability that the return of the portfolio is more than 15%.

 

Cost E(R) G(R) Treasury bond Kasai Corporation Limpopo Company $70,000 $100,000 $80,000 6% 15% 25% 16% 30%