Assume there are two securities security one is gold and

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Assume there are two securities. Security one is Gold and security two is Ford. Their return and risk is as follows: r1 = 0.031 s1= 0.158 r2 = 0.095 s2= 0.237 Calculate the expected portfolio return and standard deviation for different values of x1 and x, where Xi is the percent of wealth invested in security i. Xi can range from 0 to 100. Assume the correlation coefficient is p12 = 0. Plot the range of possible combinations of expected return and standard deviation. Repeat the problem for p12 = +.5.

Reference no: EM13618726

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