Assignment:
A portfolio has $200,000 invested in Asset X and $300,000 in Asset Y. Consider the summary measures in the following table.
| Measures |
Asset X |
Asset Y |
| Expected Return (%) |
8 |
12 |
| Standard Deviation (%) |
12 |
20 |
| Correlation |
0.4 |
a. Calculate the portfolio weights for assets X and Y.
b. Calculate the expected return of the portfolio.
c. Calculate the standard deviation of the portfolio.
Provide complete and step by step solution for the question and show calculations and use formulas.