# Expected return of the portfolio

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You are building a two stock portfolio with securities ST and XY. Given the following information:

- Standard deviation for stock ST = 15%

- Standard deviation for stock XY = 25%

- Expected return for stock ST = 18%

- Expected return for stock XY = 24%

- Correlation coefficient between ST and XY = 0.40

- 60% of the Portfolio is invested in ST, the other 40% in XY

What is the covariance between Securities ST and XY and the expected return for this portfolio?

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Expected return of the portfolio is assessed.

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