Question
Security F has an expected return of 8.5 percent and a standard deviation of 26 percent per year. Security G has an expected return of
Security F has an expected return of 8.5 percent and a standard deviation of 26 percent per year. Security G has an expected return of 15 percent and a standard deviation of 58 percent per year. A. What is the expected return on a portfolio composed of 30 percent of security F and 75 percent of security G? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 30.12)) B. If the correlation between the returns of security F and security G is 0.24, what is the standard deviation of the portfolio described in part (a)? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 30.12)) Please Show all work!!!
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