Question: You construct a portfolio containing two stocks, X and Y. You invest 75% 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 75% of your funds in Stock X and the remainder in Stock Y. Stock X has an expected return of 6.8% and has a standard deviation of 15%. Stock Y has an expected return of 15.9% and has a standard deviation of 19%. The correlation between the two stocks is 0.4. What is the expected return on the portfolio

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