Question
Sarah is constructing her investment portfolio and is considering investing in two assets: Asset X with an expected return of 8% and a standard deviation
Sarah is constructing her investment portfolio and is considering investing in two assets: Asset X with an expected return of 8% and a standard deviation of 12%, and Asset Y with an expected return of 10% and a standard deviation of 15%. If the correlation coefficient between the two assets is 0.5, calculate the portfolio expected return and portfolio standard deviation when Sarah invests 60% in Asset X and 40% in Asset Y.
Calculate the portfolio expected return and portfolio standard deviation for Sarah's investment portfolio.
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