Calculate the portfolio expected return

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Reference no: EM132011095

Consider a portfolio that has two securities:

Sec. Amount invested Exp. Ret. Var./ Cov Matrix

A B

A $10,000 .05 A .08 -.02

B $35,000 .14 B -.02 .10

a) Calculate the portfolio expected return.

b) Calculate the standard deviation of the porfolio.

c) Assume you have $5000 additionally invested in Tbills. WHat is the expected return and standard deviation of you total portfolio?

Reference no: EM132011095

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