Problem 6.1. The probability distribution of returns on stocks X and Y follows. Probabilit 0.2 0.3...

 

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Problem 6.1. The probability distribution of returns on stocks X and Y follows. Probabilit 0.2 0.3 0.3 0.2 y Rx -20 0% 20 40 % % % Ry 1% 3% 5% 7% Calculate the expected return and the standard deviation of return of a portfolio that invests $6000 in X and $4000 in Y. Problem 6.1. The probability distribution of returns on stocks X and Y follows. Probabilit 0.2 0.3 0.3 0.2 y Rx -20 0% 20 40 % % % Ry 1% 3% 5% 7% Calculate the expected return and the standard deviation of return of a portfolio that invests $6000 in X and $4000 in Y.

Answer rating: 100% (QA)

To calculate the expected return and standard deviation of a portfolio you need the expected return ... View the full answer