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5 ) Assume that the expected returns for stocks B and C are 4 % and 7 . 5 % , and that their standard

5) Assume that the expected returns for stocks B and C are 4% and 7.5%, and that their standard deviations are 14.5% and 5.32%. If their correlation is -.5, what is the expected return and the SD for a portfolio consisting of 40% Stock B and 60% Stock C?
A.5.75%,5.03%
B.6.1%,5.03%
C.6.1%,6.60%
D.6.1%,3.34%
9)Suppose investors in Acme Co., Inc. expect to earn a return of 7%(with a 15% probability), a return of 12%(with a 70% probability) and a 17% return (with a probability of 15%). What is the expected return for Acmes stock?
A.8.3%
B.30.0%
C.12.0%
D.14.6%

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