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a.) What is the portfolio return if you invest equally in Stocks A and B? b.) What is the correlation between Stocks A and B?

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a.) What is the portfolio return if you invest equally in Stocks A and B?

b.) What is the correlation between Stocks A and B? Using BA II Plus?

c.) What is the portfolio standard deviation if you invest equally in Stocks A and B?

Use the following information to answer the next three questions Probability Stock A Stock B Boom 1/3 -11.5% 12.45% Normal 1/3 2.8% 6.52% 1/3 5.5% 8.85% Recession Average Ret -1.07% 9.27% Standard Deviation (0) 6.46% 2.11%

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