kaia_p
#1
Hi,
please help to solve and explain- much appreciated
Security 1 - E® = 16% Standard deviation = 20%
Security 2 - E® = 12% Standard deviation = 20%
If the portfolio of the two securities has an expected return of 15%, the proportion invested in Security 1 is:
A 25%. B 50%. C 75%.
kaia_p
#2
Don’t bother to reply- my overstudied brain though the solution would be more compliated and just realized it’s simple math
cpk123
#3
1st to 2nd will be in the ratio of (15-12) to (16-15) -> 3:1