Finance Assignment/ Professional Essay Writers
March 18th, 2020
You are given the expected return and standard deviation of Asset 1 and Asset 2: E(R1) = 10%, σ1 = 10% E(R2) = 14%, σ2 = 16% The correlation between the two assets is p = 0.2.
a. Calculate the expected return and risk of portfolios invested in the following proportions:
Asset 1 Asset 2 100%………………………. 0% 80%………………………… 20% 60%………………………… 40% 50%………………………… 50% 40%………………………… 60% 20%………………………… 80% 0%………………………….. 100%
b. Use the expected return and risk calculations for all the portfolios to plot an expected return-risk graph. Get Finance Help Today
