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Stock Average Return St Dev Corr Coefficient Beta GM 1.5% .098 .71 1.23 F 1.4% .097 .71 1.05 1. You can split a $90,000 investment

Stock Average Return St Dev Corr Coefficient Beta
GM 1.5% .098 .71 1.23
F 1.4% .097 .71 1.05

1. You can split a $90,000 investment anyway you want into your two-stock portfolio (i.e., except 100% in one-stock or 50%/50% split between the two). Decide how much of the $90,000 you want to invest in Stock 1 and put the remainder of the $90,000 in Stock 2. Calculate the weights for each stock in your portfolio

2. What is the expected return of your portfolio?

3. What is the standard deviation of your portfolio?

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