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Suppose KeyCorp (KEY) has an expected return of 6% and a standard deviation of 35%. Also suppose Air Products and Chemicals, Inc. (APD) has an
Suppose KeyCorp (KEY) has an expected return of 6% and a standard deviation of
35%. Also suppose Air Products and Chemicals, Inc. (APD) has an expected return
of 8% and a standard deviation of 25%. KEY and APD have a correlation coefficient
of 0.15. What is the expected return and standard deviation of a portfolio that has
30% of its weight in KEY and 70% of its weight in APD?
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