Finance School of Management Portfolios of two correlated Common Stock Two common stock with these statistics mean return 1=0.15 mean return 2=0.10 standard deviation 1=0.20 standard deviation 2=0.25 correlation of returns=0.90 initial price 1=$57.25 initial price 2=$72.625 uesTc23 Finance School of Management Portfolios of Two Correlated Common Stock ❖ Two common stock with these statistics: – mean return 1 = 0.15 – mean return 2 = 0.10 – standard deviation 1 = 0.20 – standard deviation 2 = 0.25 – correlation of returns = 0.90 – initial price 1 = $57.25 – initial price 2 = $72.625