Stocks A and B have the following returns. a. What are the expected returns of the two

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Stocks A and B have the following returns.

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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 0.48 what is the expected return and standard deviation of a portfolio of 65% stock A and 35% stock B?

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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