The expected returns and standard deviation of returns for two securities are as follows: security z security yexpected return 15% 35%standard deviation 20% 40%the correlation between the returns is + .25.(a) calculate the expected return and standard deviation for the following portfolios: 1i. all in zii. 75 in z and .25 in yiii. 5 in z and .5 in yiv. 25 in z and .75 in yv. all in y

Given that,

Expected return on Z and Y,

Rz = 0.15 and Ry =0.35

Standard deviations:

Sz = 0.2, Sy = 0.4

correlation coefficient: rxy = 0.25

Expected return on portfolio = Rz × wz + Ry × wy

where, wz and wy are weights of Z and Y respectively in portfolio.

Standard deviation of portfolio:

Table attached with this answer shows mean return and standard deviation at different combinations of weights:

answer; no individual buyer or seller has any significant impact on the market price;

colorswithkids_(# of how many kids are in the class)

explanation: