Question: MSFT has an expected return E(x) of 0.21 and a standard deviation sigma of 0.25 WMT has an expected return E(x) of 0.14 and a

MSFT has an expected return E(x) of 0.21 and a standard deviation sigma of 0.25

WMT has an expected return E(x) of 0.14 and a standard deviation sigma of 0.2

The correlation between MSFT and WMT is 0.26

Compute the expected return of the portfolio if you invest a fraction 0.75 into MSFT and the rest into WMT.

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