Purchase Solution

Expected return of the portfolio

Not what you're looking for?

Ask Custom Question

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?

Purchase this Solution

Solution Summary

Expected return of the portfolio is assessed.

Purchase this Solution

Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.