Question: stocks a and b have the following returns stock...
Question details
, 
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 ______?
