Answer to Question #98771 in Finance for Klaus

Question #98771
Suppose you plan to create a portfolio with two securities: Rolie and Polie. Rolie has an expected return of 6 percent with a standard deviation of 5 percent. Polie has an expected return of 18 percent with a standard deviation of 15 percent. The correlation between the returns of these two securities is perfectly negative. What percentage of your investment should be in Polie to make the portfolio risk free? What would be the expected return on the portfolio?
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Expert's answer
2019-11-18T10:09:26-0500
Dear Klaus, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order

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