7. Stocks A and B have the following returns (see MyFinanceLab for the data in Excel format):...

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7. Stocks A and B have the following returns (see MyFinanceLab for the data in Excel format):

Stock A Stock B 12345 1 0.10 0.06 0.07 0.02 0.15 0.05 -0.051 0.06 0.01 0.02

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 70% stock A and 30% stock B?

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Fundamentals Of Corporate Finance

ISBN: 9781292018409

3rd Global Edition

Authors: Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Oct 21, 2024 11:00 AM

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7. Stocks A and B have the following returns (see MyFinanceLab for the data in Excel format):...

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Fundamentals Of Corporate Finance

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