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Suppose that you want to create a portfolio that consists of a corporate bond fund, X, and a common stock fund, Y. For a $1,000
Suppose that you want to create a portfolio that consists of a corporate bond fund, X, and a common stock fund, Y. For a $1,000 investment, the expected return for X is $80 and the expected return for Y is $105. The variance for X is 1,625 and the variance for Y is 13,475. The covariance of X and Y is 3,951. Complete parts (a) through (d). a. Compute the portfolio expected return and portfolio risk if you put $200 in the corporate bond fund and $800 in the common stock fund. The portfolio expected return is $ 100.00 (Type an integer or a decimal. Do not round.) The portfolio risk is $- (Round to two decimal places as needed.)
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