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1 Stocks A and B have the following returns: (Click on the following icon e in order to copy its contents into a spreadsheet.) Stock
1 Stocks A and B have the following returns: (Click on the following icon e in order to copy its contents into a spreadsheet.) Stock A Stock B 0.08 0.06 2 0.06 0.02 3 0.12 0.03 -0.03 0.01 5 0.09 -0.04 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 0.44, what is the expected return and standard deviation of a portfolio of 74% stock A and 26% stock B? The staruaru deviation or te Telur Tor STOCK DIS .000 . (Rouru to Tour decimal praces.) c. If their correlation is 0.44, what is the expected return and standard deviation of a portfolio of 74% stock A and 26% stock B? The expected return for the portfolio is .0515. (Round to four decimal places.) The standard deviation of the return for the portfolio is (Round to four decimal places.) Enter your answer in the answer box and then click Check
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