Question: Calculate the covariance and correlation coefficient between the two securities
Calculate the covariance and correlation coefficient between the two securities of a portfolio that has 40 percent in stock X (with an expected return of 40 percent and a standard deviation of 12 percent) and 60 percent in stock Y (with an expected return of 30 percent and a standard deviation of 15 percent). The portfolio standard deviation is 6 percent.
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