Solution-Calculate portfolio return and risk

Calculate portfolio return and risk

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Question: An investor holds two equity shares X and Y in equal proportion with following risk and retun characteristics. E(X)=24% , E(Y)=19% SD(X)=28% , SD(Y)=23% The return of these securities have a positive co-relation of 0.6. Calculate portfolio return and risk. Further suppose that the investor wants to reduce the portfolio risk to 15% , how much should the co-relation co-efficient.

Reference no: EM131435862

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Calculate portfolio return and risk : An investor holds two equity shares X and Y in equal proportion with following risk and retun characteristics. E(X)=24% , E(Y)=19% SD(X)=28% , SD(Y)=23% The return of these securities have a positive co-relation of 0.6. Calculate portfolio return ..

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Calculate portfolio return and risk

Reference no: EM131435862

Reference no: EM131435862

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