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An investor holds two equity shares x and y in equal

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.

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Finance Basics: An investor holds two equity shares x and y in equal

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