Please check your answer for accuracy. Problem 3. Consider two stocks: WMT and IBM with the following

 

Please check your answer for accuracy. 

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Problem 3. Consider two stocks: WMT and IBM with the following prop- erties Stock E(tr) (tr) WMT 8% 13% IBM 12% 20% The correlation of the two stock returns is PWMT, IBM = 9%, and the risk-free rate is rf = 1%. You are advising a client who has $1 million invested. Currently 50% of this money is in WMT and 50% is in IBM. Problem 3. Consider two stocks: WMT and IBM with the following prop- erties Stock E(tr) (tr) WMT 8% 13% IBM 12% 20% The correlation of the two stock returns is PWMT, IBM = 9%, and the risk-free rate is rf = 1%. You are advising a client who has $1 million invested. Currently 50% of this money is in WMT and 50% is in IBM.