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You are creating a portfolio from the following assets, X and Y: Expected return Std Dev X 10% 20% y 15% 40% The correlation between
You are creating a portfolio from the following assets, X and Y: | |||||
Expected return | Std Dev | ||||
X | 10% | 20% | |||
y | 15% | 40% | |||
The correlation between X & Y is .5 | |||||
If you desire an expected return of 12 percent: | |||||
a) What is the weight of each stock? | |||||
b) What is the portfolio's standard deviation? |
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