Question: Problem 4 (20 points) Jack has a portfolio with two stocks ABC and XYZ with the following parameters: $ Invested Expected Standard Return Deviation of

Problem 4 (20 points) Jack has a portfolio with two stocks ABC and XYZ with the following parameters: $ Invested Expected Standard Return Deviation of Return $6000 8.23% ABC XYZ 4.45% 7.96% $4000 9.76% The correlation coefficient between ABC and XYZ is 0.45 A. Compute expected return of the portfolio (5 points) B. Calculate covariance of ABC and XYZ stock. (5 points) C. Compute the standard deviation of the portfolio. (10 points)

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