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As an analyst in Bullish Investment Company, you have derived the following information about 2...

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Accounting

As an analyst in Bullish Investment Company, you have derived the following information about 2 securities from past data:

Securities

Expected returns (%)

Standard deviation (%)

X

15

15

Y

5

10

Correlation XY

-0.7

Based on the above information;

  1. Calculate the portfolio expected returns and standard deviation if the investor invests equally in Stock X and Stock Y.

ii. Calculate the standard deviation for this portfolio, the investor invests equally in Stock X and Stock Y.

please help me to do this ques with the correct formula

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