Question: 1. The expected returns and standard deviation of returns for two securities are as follows: Security Z Expected Return 15% Standard Deviation 20% Security

1. The expected returns and standard deviation of returns for two securities

1. The expected returns and standard deviation of returns for two securities are as follows: Security Z Expected Return 15% Standard Deviation 20% Security Y 35% 40% The correlation between the returns is +0.25. (a) Calculate the expected return and standard deviation for the following portfolios: 1. All in Z 2. 0.75 in Z and .25 in Y 3. 0.5 in Z and .5 in Y 4. 0.25 in Z and .75 in Y 5. All in Y

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