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4. Following is the information is available for company Xian and Yancheng, R = 25%, R, = 35%, 0% = 15%, , = 20% a)

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4. Following is the information is available for company Xian and Yancheng, R = 25%, R, = 35%, 0% = 15%, , = 20% a) What is the expected return and standard deviation for a portfolio composed of 70 per cent of Yancheng and 30 per cent of Xian assuming a correlation coefficient of -0.50 between two shares? b) What will be the expected return and standard deviation for above portfolio if these two shares are perfectly negatively correlated with each other

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