forming a portfolio

philliesgirl87 · #1 Nov 15, 2007, 11:38 PM

The standard deviation of expected returns for investments X and Y equal 20% and 22% respectively. The correlation between returns for X and Y is .40. Find the combination of X and Y that yield the minimum risk portfolio. If your objective is to form a portfolio with these two securities that is not dominated by any other combination, how would you find the expected return and how much the dominant portfolios comprise?

magprob · Nov 16, 2007, 11:25 PM

My portfolio has been gyrating like a drunk belly dancers navel.



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