Question: Stocks Expected Return Standard Deviation Beta ( Equity ) Debt / Equity Amazon 4 2 % 2 8 % 1 . 1 4 . 0

Stocks Expected Return Standard Deviation Beta (Equity) Debt/Equity Amazon 42%28%1.14.08 Disney 14%24%1.40.25
The correlation between Amazon and Disney is .12. Assume you have $100,000 to invest in these two stocks. You need to decide how much you want to put into each one (weights cannot be 50/50 and you must invest in each stock (so no weights can be 0). Calculate the expected return, standard deviation and beta of your portfolio.

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