Tyler Trucks stock has an annual return mean and standard deviation of 12 percent and 32 percent,

Question:

Tyler Trucks stock has an annual return mean and standard deviation of 12 percent and 32 percent, respectively. Michael Moped Manufacturing stock has an annual return mean and standard deviation of 16 percent and 58 percent, respectively. Your portfolio allocates equal funds to Tyler Trucks stock and Michael Moped Manufacturing stock. The return correlation between Tyler Trucks and Michael Moped Manufacturing is .5. What is the smallest expected loss for your portfolio in the coming month with a probability of 5 percent?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...