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Christy Is Considering Investing in the Common Stock of One

question 79

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Christy is considering investing in the common stock of One Liberty and Heico.The following data are available for these two securities:
 Fanected return  One liberty 12 Helca .16 Standard Aeriation of return 0820\begin{array} { l c c } \text { Fanected return } & \frac { \text { One liberty } } { 12 } & \frac { \text { Helca } } { .16 } \\\text { Standard Aeriation of return } & 08 & 20\end{array}
If she invests 30% of her funds in Heico and 70% in One Liberty, and if the correlation of returns between these securities is +0.65, what is the portfolio's expected return and standard deviation?


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