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TThe answers are there, i just need to know how to solve for them WITHOUT EXCEL please Suppose you are creating a portfolio of two
TThe answers are there, i just need to know how to solve for them WITHOUT EXCEL please
Suppose you are creating a portfolio of two assets (X and Y). They are equally held. The extected return and standard deviation of each asset is shown in the accompanying table. Assets Expected Return (%) SD (%) Weight X 10.1 16.8 0.5 Y 16.8 27.5 0.5 (a) What is the portfolio expected return? E(Rp)=0.5*0.101+0.5*0.168=13.45% Hint: E(Rp) = wiXE(R1) + w2XE(R2) (b) What is the SD of portfolio returns (Op) if the Px,y is 1? 22.15% Hint: o = wo + wo} + 2w1W2Px,y0xOy (c) What is the SD of portfolio returns (Op) if the Px,y is 0.5? 19.37 (d) What is the SD of portfolio returns (Op) if the Pxy is -0.5? 12.01Step by Step Solution
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