You have $ 10 comma 000 to invest. You decide to invest $ 20 comma 000 in Google and short sell $ 10 comma 000 worth of Yahoo! Google's expected return is 15 % with a volatility of 30 % and Yahoo!'s expected return is 12 % with a volatility of 25 %. The stocks have a correlation of 0.90. What is the expected return and volatility of the portfolio? The expected return is

expected return is 18%

volatility of the portfolio 13.23 %

Explanation:

Your Investment: $ 10,000

Invest $ 20,000 in Google, Google's expected return is 15 %

Sell $ 10,000 worth of Yahoo! Yahoo! Yahoo!'s expected return is 12 %

=> The weight of your portfolio is 2 for the Google stock, and -1 for the Yahoo stock.  The negative sign for the Yahoo stock indicates a short position in the stock. The expected return is the weighted average of the returns on the two stocks:

The volatility of the portfolio is:

= 13.23 %

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.