Portfolio R Offers an Expected Return of 12% with a Standard

question 48

Essay

Portfolio R offers an expected return of 12% with a standard deviation of 20%. Portfolio S has an expected return of 8% with a standard deviation of 10%. The correlation of the portfolios' returns is 0.5.
-Refer to the information above. What is the expected return of a new portfolio that is
60% invested in Portfolio R and 40% in Portfolio S?

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Definitions:

Vocational Fit

Determining which profession fits your personality.

Personality Characteristics

Enduring traits and qualities that define an individual's behavior, attitudes, and emotional responses.

Vocation

A person's employment or main occupation, especially regarded as particularly worthy and requiring great dedication.

Career Path

A progression or series of jobs and roles that a person undertakes throughout their working life.