Maputo Development Bank has a credit portfolio of two loans for R4 200 000 each. One loan has an expected return of 17% and a standard deviation of 25%. The other loan has an expected return of 9% and a standard deviation of 15%. It is determined that the covariance between the two loans is 2%.

 Determine the expected return and standard deviation of the portfolio.

Answer rating: 100% (QA)

To determine the expected return and standard deviation of a portfolio with two assets you can use t... View the full answer