Question: while solving the question please do write the formula An investor is considering investing in the following two stocks, X and Y: b) Expected return

while solving the question please do write the formula

An investor is considering investing in the following two stocks, X and Y: b) Expected return Variance 10% 15% 6% 8% The correlation between the two securities returns is -0.2. Calculate the expected return and standard deviation of the following four portfolios: Proportions (%) Portfolio X Y 25 75 75 25 A WN - 50 50 100 0 (6 marks) Discuss the Roll critique in relation to the empirical testing of the CAPM. (7 marks)

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