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Suppose you have $15,000 to invest and you have purchased the following securities. Stock A Stock B $ Amount $9,000 $6,000 Mean return 10.85% 20.45%
Suppose you have $15,000 to invest and you have purchased the following securities.
| Stock A | Stock B |
$ Amount | $9,000 | $6,000 |
Mean return | 10.85% | 20.45% |
Standard deviation (sample) | 35% | 15% |
Correlation coefficient | -0.85 |
Calculate the following statistics: (1/100 of one percent without % sign, e.g. 12.671, if a negative percentage, -9.56):
1) Expected portfolio return: Answer
2) Expected portfolio standard deviation: Answer
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