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FinanceQ&A Library4.You want to combine the following two stocks into a portfolio: Nike and Microsoft. Thelast seven years of returns are listed below. The correlation between the two stocks is0.65. You willput 54% of your money into Nike and 46% into Microsoft. What wouldbe the expected return and standard deviation of returns of your portfolio?3a-7%a3%a402052%40%a-15%aa1%a19%a12%a14%aNike22%a24%aMicrosofta16%a-8%-7%aQuestion

Asked Nov 24, 2019

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I am stuck on how to do this problem and I need to understand how to set it up in excel with formulas.

Step 1

**Calculation of Expected Return and Standard Deviation of Portfolio:**

The expected return of portfolio is **12.02%** and standard deviation of portfolio is **19.61%**.

**Excel Sprea...**

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