Question: You have the following information on two securities in which you have invested: a. Which stock is riskier in a portfolio context? Which stock is

You have the following information on two securities in which you have invested:

a. Which stock is riskier in a portfolio context? Which stock is riskier if you are considering them as individual assets (not part of a portfolio)?
b. Compute the expected return on the portfolio.
c. If the securities have a correlation of +0.60, compute the standard deviation of the portfolio.
d. Compute the beta of theportfolio.

Expected Standard Percent Security Return Deviation Beta Invested (w) Xerox Kodak 15% 12% 4.5% 3.8% 1.20 0.98 35% 65%

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