Stocks A and B have the following returns: a. What are the expected returns of the...
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Stocks A and B have the following returns: 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 0.23, what is the expected return and standard deviation of a portfolio of 53% stock A and 47% stock B? Data table (Click on the following icon in order to copy its contents into a spreadsheet.) 12345 Stock A Stock B 0.08 0.05 0.05 0.01 0.13 0.04 -0.03 0.01 0.08 -0.04 Print Done Stocks A and B have the following returns: 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 0.23, what is the expected return and standard deviation of a portfolio of 53% stock A and 47% stock B? Data table (Click on the following icon in order to copy its contents into a spreadsheet.) 12345 Stock A Stock B 0.08 0.05 0.05 0.01 0.13 0.04 -0.03 0.01 0.08 -0.04 Print Done
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