Question: MSFT has an expected return E ( x ) of 0 . 2 5 and a standard deviation sigma of 0 . 2 WMT has

MSFT has an expected return E(x) of 0.25 and a standard deviation sigma of 0.2
WMT has an expected return E(x) of 0.14 and a standard deviation sigma of 0.1
The correlation between MSFT and WMT is 0.43
Compute the expected return of the portfolio if you invest a fraction 0.77 into MSFT and the rest into WMT.

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