The following are data for two securities Security Expected return ( ) Standard deviation ( ) Stock 10 18 63 Bond 5 8 27 The correlation coefficient between the two securities is 48 55 Calculate the return and risk of a portfolio using the following weights Stock 40 , Bond 60

Question: The following are data for two securities: Security Expected return (%) Standard deviation (%) Stock 10 18.63 Bond 5 8.27 The correlation coefficient between

The following are data for two securities:

Security	Expected return (%)	Standard deviation (%)
Stock	10	18.63
Bond	5	8.27

The correlation coefficient between the two securities is -48.55%. Calculate the return and risk of a portfolio using the following weights: Stock 40%, Bond 60%

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