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A,B,C 2 Stocks A and B have the following returns: Stock A Stock B 1 0.11 0.04 2 0.05 0.04 3 0.14 0.06 -0.04 0.02

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A,B,C

2 Stocks A and B have the following returns: Stock A Stock B 1 0.11 0.04 2 0.05 0.04 3 0.14 0.06 -0.04 0.02 5 0.09 -0.02 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 0.42, what is the expected return and standard deviation of a portfolio of 59% stock A and 41% stock B? a. What are the expected returns of the two stocks? 4 The expected return for stock Ais 0 (Round to three decimal places)

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