Question: Jack has a portfolio with two stocks ABC and XYZ with the following parameters: $ Invested Expected Return Standard Deviation of Return ABC $4000 4.45%

Jack has a portfolio with two stocks ABC and XYZ with the following parameters:

$ Invested Expected Return Standard Deviation of Return

ABC $4000 4.45% 8.23%

XYZ $6000 7.96% 9.76%

The correlation coefficient between ABC and XYZ is 0.40

A. Compute expected return of the portfolio. 6.556%

B. Calculate covariance of ABC and XYZ stock. 32.1299

C. Compute the standard deviation of the portfolio. ??????????? Not sure how to solve this one.

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