An investor is considering investing in the following two stocks, X and Y, the portfolio weights are

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An investor is considering investing in the following two stocks, X and Y, the portfolio weights are 30% and 70% respectively.

Expected return Variance X9% 15% Y4% 7%

The correlation between the two securities returns is -0.4.

Calculate the expected return and standard deviation of the portfolio. In your opinion, is this a well-diversified portfolio? Why?

Posted Date: May 18, 2024 03:01 PM

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An investor is considering investing in the following two stocks, X and Y, the portfolio weights are

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