Question: Stock X Stock Y expected return 10% 15% standard dev 20% 25% correlation 0.67 0.67 expected portfolio return 14% risk free rate 6% A. What

Stock X Stock Y
expected return 10% 15%
standard dev 20% 25%
correlation 0.67 0.67
expected portfolio return 14%
risk free rate 6%

A. What is the expected return on a portfolio that is made up of 35 percent of Stock X and the rest in stock Y?

B. What is the standard deviation of the return on a portfolio with equal weights on the risk-free asset and Stock X?

C. What is the variance of the return on a portfolio consisting of 35 percent Stock X and the rest in stock Y?

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