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  3. stocks a and b have the following returns stock...

Question: stocks a and b have the following returns stock...

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,

Stocks A and B have the following​ returns:

Stock A

Stock B

1

0.09

0.07

2

0.07

0.04

3

0.12

0.04

4

−0.03   

0.02

5

0.08

−0.05   

a. What are the expected returns of the two​ stocks?

b. What are the standard deviations of the returns of the two​ stocks?

c. If their correlation is 0.46 ,what is the expected return and standard deviation of a portfolio of

76​% stock A and 24​% stock​ B?

a. What are the expected returns of the two​ stocks?

The expected return for stock A is _____?

​The expected return for stock B is ______?

b. What are the standard deviations of the returns of the two​ stocks?

The standard deviation of the return for stock A is _____?

​The standard deviation of the return for stock B is _____?

​c. If their correlation is 0.46 what is the expected return and standard deviation of a portfolio of 76​%

stock A and 24​% stock​ B?

The expected return for the portfolio is _____?

​The standard deviation of the return for the portfolio is ______?

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