Let x be the yearly proportional return for stock C, and let y be the yearly proportional return for stock D If x 11, y 09, x 17, y 17, and 2xy 0412, find the mean and standard deviation of the portfolio return P 5x 5y Discuss the risk of the portfolio

Question: Let x be the yearly proportional return for stock C, and let y be the yearly proportional return for stock D. If x =11, y

Let x be the yearly proportional return for stock C, and let y be the yearly proportional return for stock D. If µx =11, µy =09, σx =17, σy =17, and σ2xy =0412, find the mean and standard deviation of the portfolio return P =5x +5y. Discuss the risk of the portfolio.

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