Calculate the return and risk of a two asset portfolio


Calculate the return and risk of a two asset portfolio. Asset 1 has an annualized expected real return of 5.5% and a weight of 35% in the portfolio. Asset 2 has an annualized expected real rate of return of 2.0% and a weight of 40% in the portfolio. The standard deviation of their annualized daily returns is 16.4% for Asset 1 and 10.2% for Asset 2. Assume a correlation coefficient of 0.37. Show your work step-wise to receive all points.

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Financial Management: Calculate the return and risk of a two asset portfolio
Reference No:- TGS01410790

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