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Problems For Assignment On FIN642
Problems For Assignment On FIN642
Problems For Assignment On FIN642
27. You are considering two assets with the following characteristics:
E(R1) =0.15 σ1 = 0.10 W1= 0.45
E(R2) = 0.20 σ2 = 0.23 W2= 0.55
Compute the mean and standard deviation of two portfolios if r1,2 = -0.60
28. Consider asset X as risk free where 35% of total fund is allocated and asset Y risky where
remaining fund is allocated. The rate of return of asset X is 7% and of asset Y is 13% with standard
deviation of 8%. What is the rate of rate and level of risk of this portfolio?