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Calculate the weight in the portfolio

Problem: You are planning to invest $200,000. Two securities X and Y are available, and you can invest in either of them or in a portfolio with some of each. The correlation coefficient is of X and Y is -0.50. Assuming the following additional data, calculate the weight of A in the portfolio that produces the minimum risk portfolio.

                             Stock X    Stock Y    "Roh"

Expected return      15.0%    12.8%    -0.5

Standard deviation    20.0%    25.7%    -0.5

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Finance Basics: Calculate the weight in the portfolio

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Finance Basics: Calculate the weight in the portfolio

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