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SPY has mean annual return of 10% and volatility of 20%, while TLT has mean annual return of 4% and volatility of 10%. The correlation
SPY has mean annual return of 10% and volatility of 20%, while TLT has mean annual return of 4% and volatility of 10%. The correlation between the two is -0.1. Suppose you want to achieve an expected return of 7.6% in a year by allocating your wealth between the two assets. What proportion should you invest in each asset? What is the volatility (standard deviation) of your portfolio?
be specific and write details with formulas also
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