Consider the two following common stocks The correlation coefficient between the returns for the two common stocks is .50. An investor plans to put 60% of his wealth in MGA common stock and 40% in MGB common stock.
(a)Determine the expected return for this portfolio.
(b)Determine the standard deviation of the portfolio's returns.

Question

Consider the two following common stocks  The correlation coefficient between the returns for the two common stocks is .50. An investor plans to put 60% of his wealth in MGA common stock and 40% in MGB common stock.
(a)Determine the expected return for this portfolio.
(b)Determine the standard deviation of the portfolio's returns.

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The Answer of Consider the two following common stocks  The correlation coefficient between the returns for the two common stocks is .50. An investor plans to put 60% of his wealth in MGA common stock and 40% in MGB common stock.
(a)Determine the expected return for this portfolio.
(b)Determine the standard deviation of the portfolio's returns.

Consider the Two Following Common Stocks the Correlation Coefficient