a. If the weight of portfolio assets assigned to investment X is 0.8, the portfolio expected return is S (Type an integer or a decimal.) b. If the weight of portfolio assets assigned to investment X is 0.8, the portfolio risk is approximately s (Round to two decimal places as needed.)

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter5: Inverse, Exponential, And Logarithmic Functions
Section5.6: Exponential And Logarithmic Equations
Problem 68E
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Two investments, X and Y, have the characteristics shown below.
E(X) = $60, E(Y) = $90, o = 10,000, o? = 17,000 and axy = 6,500
If the weight of portfolio assets assigned to investment X is 0.8, calculate the
a. portfolio expected return and
b. portfolio risk.
a. If the weight of portfolio assets assigned to investment X is 0.8, the portfolio expected return is $
(Type an integer or a decimal.)
b. If the weight of portfolio assets assigned to investment X is 0.8, the portfolio risk is approximately $.
(Round to two decimal places as needed.)
Transcribed Image Text:Two investments, X and Y, have the characteristics shown below. E(X) = $60, E(Y) = $90, o = 10,000, o? = 17,000 and axy = 6,500 If the weight of portfolio assets assigned to investment X is 0.8, calculate the a. portfolio expected return and b. portfolio risk. a. If the weight of portfolio assets assigned to investment X is 0.8, the portfolio expected return is $ (Type an integer or a decimal.) b. If the weight of portfolio assets assigned to investment X is 0.8, the portfolio risk is approximately $. (Round to two decimal places as needed.)
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