Question: You construct a portfolio containing two stocks, X and Y. You invest 20% of your funds in Stock X and the remainder in Stock Y.

You construct a portfolio containing two stocks, X and Y. You

You construct a portfolio containing two stocks, X and Y. You invest 20% of your funds in Stock X and the remainder in Stock Y. Stock X has an expected return of 8.2% and has a standard deviation of 14%. Stock Y has an expected return of 11.4% and has a standard deviation of 18%. The covariance between the two stocks is 0.0126. What is the correlation coefficient between the two stocks

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