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7. Stocks A and B has the following returns: 7. Stocks A and B has the following returns: a) What is expected returns of these

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7. Stocks A and B has the following returns:

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7. Stocks A and B has the following returns: a) What is expected returns of these stocks b) What is standard deviation of these stocks? c) If their correlation is 0.2, and you invest $250,000 in stock A and $500,000 in stock B, what is the expected return and standard deviation of your portfolio? d) Which one is better option? Investing all your money in stock A, in stock B or in the portfolio of stock A and B? Why? Support your choice with both analysis and explanation

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