1. If SIg-C = 25% and rho A-C = -1% what is the standard deviation of returns for a portfolio compromised of 50% A and 50% c?

2. What is the expected value return for a portfolio constructed of 35% A, 40% B, and the rest invested in C?

For the following two questions, consider the Normal distribution model of these stocks' historical return data. Assume that future return data will be similar to the historical data. Stock mu sigma rho (Correlation Coet.) A 10% 35% A to B -5% 00 B 14% 26% B to C 25% 11% Sig-C A to C rho A-C