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How to solve the expected return and standard deviation

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Reference no: EM132557182

The securities of companies Z and Y have the following expected returns and standard deviations:

Company Z                         15%                  20%

Company Y                           35%                 40%

Assume that the correlation between the returns of the two securities is 0.25.

Question (a) Calculate the expected return and standard deviation for the following portfolios:

(1) 100%Z

(2) 75%Z + 25%Y

(3) 50%Z + 50%Y

(4) 25%X + 75%Y

(5) 100%Y

Reference no: EM132557182

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