Business, 20.08.2020 19:01 nikki225

Security F has an expected return of 11.6 percent and a standard deviation of 44.6 percent per year. Security G has an expected return of 16.6 percent and a standard deviation of 63.6 percent per year. a. What is the expected return on a portfolio composed of 24 percent of Security F and 76 percent of Security G? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) Expected return 15.40 15.40 Correct % b. If the correlation between the returns of Security F and Security G is .19, what is the standard deviation of the portfolio described in part (a)? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) Standard deviation 51.45 51.45 Correct %

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Security F has an expected return of 11.6 percent and a standard deviation of 44.6 percent per year....

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