Question: Problem: Based on historical data, Expected annual return Standard deviation Target 6% 26% Berkshire Hathaway 5% 5 17% a. What is the expected return and

Problem: Based on historical data, Expected annual return Standard deviation Target

Problem: Based on historical data, Expected annual return Standard deviation Target 6% 26% Berkshire Hathaway 5% 5 17% a. What is the expected return and risk (standard deviation) of your portfolio if you only hold Target? b. If you split your money evenly between Target and Berkshire, what is the expected return and risk of your portfolio (Corr(RIGT,RBRK)=0.28)

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