What is the required return on portfolio with sp

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Reference no: EM131934034

You plan to invest in Stock X, Stock Y, or some combination of the two. The expected return for X is 10% and σx= 5%. The expected return for Y is 12% and σy = 6%. The correlation coefficient, ρxy, is 0.75.

Suppose rm = 12%, σm = 4% and rF= 6%. What is the required return on a portfolio with σp = 10%

Reference no: EM131934034

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