1. Stock A has an expected reappear of 14% and a sd of 30%. Stock B has an expected reappear of 20% and
a sd of 50%. The correspondence coefficient among them is 0.2. What are the expected reappear and sd of a
portfolio endueed 40% in Stock A and 60% in B?
2. You contrive a intrepid portfolio delay expected blame of reappear of 19% and sd of 29%. The T-bill blame is
a. You select to endue 60% of a portfolio in an equity capital and 40% in a T-bill capital market
fund. What is the expected treasure and sd of the blame of reappear on his portfolio?
b. Suppose that your intrepid portfolio includes the subjoined enduements in the dedicated proportions:
Stock A 25%
Stock B 32%
Stock C 43%
What are the enduement proportions of your overall portfolio, including the position in T-bills?