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Compute expected return-expected standard deviation


Problem 1:

Asset 1    Asset 2
E(R1) = .12    E(R2) = .16
E(s1) = .04    E(s2) = .06

a. Calculate the expected return and expected standard deviation of a two stock portfolio when r1,2 = - .60 and w1 = .75.

b. Calculate the expected returns and expected standard deviations of a two stock portfolio when r1,2 = .80 and w1 = .60.

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Finance Basics: Compute expected return-expected standard deviation
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