# Suppose Ford Motors stock has an expected return of 15% and a volatility of 42%, and Molson

## Question:

Suppose Ford Motors stock has an expected return of 15% and a volatility of 42%, and Molson Coors Brewing has an expected return of 11% and a volatility of 32%. If the two stocks are uncorrelated,

**a.** What is the expected return and volatility of a portfolio consisting of 73% Ford Motor stock and 27% of Molson-Coors Brewing stock?

**b.** Given your answer to a, is investing all your money in Molson-Coors stock an efficient portfolio of these two stocks?

**c.** Is investing all your money in Ford Motors an efficient portfolio of these two stocks?

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