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Suppose we obtain the following data in dollar terms: Stock market Return (mean) Risk (SD) United States 1.26% per month 4.43% United Kingdom 1.23%

Suppose we obtain the following data in dollar terms: Stock market Return (mean) Risk (SD) United States 1.26% per month 4.43% United Kingdom 1.23% per month 5.55% The correlation coefficient between the two markets is 0.58. Suppose that you invest equally, i.e., 50% each, in the two markets. Determine the expected return and standard deviation risk of the resulting international portfolio.

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