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Problem 4 (10%) Your client has $200.000 invested in Stock X. She would like to build a two-stock portfolio by investing another $200,000 in either

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Problem 4 (10%) Your client has $200.000 invested in Stock X. She would like to build a two-stock portfolio by investing another $200,000 in either Stock YoZ. She wants a portfolio with an expected return of at least 14% and is low risk as possible, but the standard deviation must be no more than 2016 What do you advise her to do, and what will be the portfolio's expected return and standard deviation Expected return Sandard deviation Correlation with Stock X Suck 154 50 1 Stock Y 139 40M 02 Stack 2 4074 0.3

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