Based on covariance of the returns on the stocks, the mean of the portfolio returns is 3.004%.
How can the portfolio mean be found?
The portfolio mean is equal to:
= (Weight of stocks X x mean of stock X) + (Weight of stock Y x Mean of stock Y)
Solving gives:
= (0.7 x 2.35%) + (0.3 x 4.53%)
= 3.004%
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