Question: Problem 4 (20 points) Jack has a portfolio with two stocks ABC and XYZ with the following parameters: Invested Expected ReturnStandard Deviation of 14.45% ABC56000

Problem 4 (20 points) Jack has a portfolio with two stocks ABC and XYZ with the following parameters: Invested Expected ReturnStandard Deviation of 14.45% ABC56000 XYZ 54000 Return 2.23% 19.76% 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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