00:01
Okay, so for the first part, we're going to find our expected return on the portfolio.
00:04
We first want to find, so our expected return in the portfolio, it looks like it we're going to do is our 0 .6 times our 8%.
00:17
That is going to be for portfolio a plus 0 .4 times the 12%.
00:24
And that's for portfolio b.
00:25
So our expected return is going to equal to 4 .8 % plus 4 .8%, which comes out to 9 .6%.
00:36
As our expected overall return.
00:39
Standard deviation for the whole portfolio, we're going to do this by taking, whoa, i don't want to add those extra lines there.
00:46
It's going to be the square root of our, sorry, it'll be the square root of, it'll be our, our expect, our, our, our expect, our probability of a, which is 0 .6, and that'll be squared, multiplied by the standard deviation of a, which is, i should find that real quick, times 5 % squared, so we'll do 0 .05 squared, okay, plus the probability of b squared times the 7 % squared in that one.
01:26
Is our standard standard deviation of b so 7 % so that's going to be right now is 0 .07 squared plus 2 times our 2 times our probability for a times the probability for b times we got our standard 0 .3 here times our 5 so 0 .05 times .07...