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The Canadian Musician/Artist Aubrey Drake Graham, known by his stage name “Drake “ has invested 70%...

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Finance

The Canadian Musician/Artist Aubrey Drake Graham, known by hisstage name “Drake “ has invested 70% of his money in share A andthe remainder in share B. He assesses their prospects asfollows:

A

B

  Expected return (%)

15

22

  Standard deviation (%)

20

24

     Correlation between returns

.4

  1. What are the expected return and standard deviation of returnson this two share portfolio? (Do not round intermediatecalculations. Round your answers to 2 decimal places.
  2. How would your answer change if the correlation coefficientwere 1, 0 or –.4? (Round your answers to 2 decimal places.)? Whathappens to the return and risk, as we change correlationcoefficients?

Provide details use timeline thanks!

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The Canadian Musician/Artist Aubrey Drake Graham, known by hisstage name “Drake “ has invested 70% of his money in share A andthe remainder in share B. He assesses their prospects asfollows:AB  Expected return (%)1522  Standard deviation (%)2024     Correlation between returns.4What are the expected return and standard deviation of returnson this two share portfolio? (Do not round intermediatecalculations. Round your answers to 2 decimal places.How would your answer change if the correlation coefficientwere 1, 0 or –.4? (Round your answers to 2 decimal places.)? Whathappens to the return and risk, as we change correlationcoefficients?Provide details use timeline thanks!

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