Security Fhas an expected return of 16.0 percent and a standard deviation of 21 percent per year. Security Ghas an expec

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Security Fhas An Expected Return Of 16 0 Percent And A Standard Deviation Of 21 Percent Per Year Security Ghas An Expec 1 (33.56 KiB) Viewed 90 times

Security Fhas an expected return of 16.0 percent and a standard deviation of 21 percent per year. Security Ghas an expected return of 21.8 percent and a standard deviation of 46 percent per year. a. What is the expected return on a portfolio composed of 30 percent of security Fand 70 percent of security G? (Do not round the intermediate calculations. Round the final answer to 2 decimal places.) Expected return of the portfolio 20.06% b. If the correlation between the returns of security Fand security G is 0.25, what is the standard deviation of the portfolio described in part (a)? (Do not round the intermediate calculations. Round the final answer to 2 decimal places.) Standard deviation 34.32%