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Security F has an expected return of 18.0 percent and a standard deviation of 25...

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Finance

Security F has an expected return of 18.0 percent and a standard deviation of 25 percent per year. Security G has an expected return of 23.4 percent and a standard deviation of 50 percent per year.

a.

What is the expected return on a portfolio composed of 30 percent of security F and 70 percent of security G? (Do not round the intermediate calculations. Round the final answer to 2 decimal places.)

Expected return of the portfolio %

b.

If the correlation between the returns of security F and security G is 0.50, what is the standard deviation of the portfolio described in part (a)? (Do not round the intermediate calculations. Round the final answer to 2 decimal places.)

Standard deviation

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