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Consider an investor who owns two stocks. Google Inc. (GOOGL) has an expected return of 8...

Consider an investor who owns two stocks. Google Inc. (GOOGL) has an expected return of 8 percent, and the investor owns $15,000 worth of the stock and he also owns $10,000 of Amazon Inc. (AMZN), which has an expected return of 6 percent. What is the expected return of his portfolio?

The correlation between the two stocks is ? = ‒ 0.4. What is the standard deviation of the portfolio if the standard deviations of the two stocks are ?????? = 20% and ?????= 15%?
What happens to the risk of the portfolio if the correlation between the two stocks increases to ? = 0.8?

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det Amazons uck te caledx (100oo) y. ( 4 15000) Gvogu 너 weightage Amazons stock im perttoti cb425000, 40% (04) (10000X X Googlu z 60./. (0.6) 100 2S006 ( 15000 100 2S000 :0.4x 0.06 + D. 6 x0.08n vestud 叮&o, are the SD., the nepecture 2. :. 0p (O.u) (015)+ Co.6) C0.2)+ 2(0.6) (0.4) (-0,4 (02) (o.is) 2 σ 0.01224 op z lo.01224 2 D. 110 6 11.06%when the coxelation to 0.8, we cam uee randad duration to measure the Ausk, (bthe portb0UD the ormula in the pevios qumon the stoeks nveases 2(0.8)(0.6) lo.u)(o.2)(0.15) 2, ㄹ 0.02922 Op z VD D2422 . D.1701-) 17.097, Hona, when the urrelation biw thu wr (From 11.06./. to 17097.

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