Question: The answer is B. And why is the covariance between the two assets 0.0551, and the standard deviation of this portfolio 27.79%? 51. Use the

The answer is B. And why is the covariance between the

The answer is B. And why is the covariance between the two assets 0.0551, and the standard deviation of this portfolio 27.79%?

51. Use the following information for Questions 51, 52 and 53. Suppose you are constructing a portfolio of assets A and B, whereas you invest in a portfolio with a long position of $6000 and $1500 in each asset respectively. These assets have a correlation of 0.5. Asset A has a return of 10.5% and standard deviation of 29%. Asset B has a return of 14.7% and standard deviation of 38%. What is the expected return of this portfolio? A) 20.16 % B) 11.34 % C) 13.86% D) 5.04 %

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