An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard deviation of return of 39%. Stock B has an expected return of 14% and a standard deviation of return of 20%. The correlation coefficient between the returns of A and B is 0.4. The risk-free rate of return is 5%.37. The proportion of the optimal risky portfolio that should be invested in stock B is approximately _________.

i was able to get thi one without problem, i need , i nee the process for 38 and30 only, thanks, please be clear on the steps. A. 29% B. 44% C. 56% **D. 71% WB = 71% Difficulty: Hard

38. The expected return on the optimal risky portfolio is _________. A. 14% **B. 16% C. 18% D. 19% E[r p ] = (.29)(.21) + (.71)(.14) = 16% Difficulty: Hard

39. The standard deviation of the returns on the optimal risky portfolio is _________.

A. 25.5% B. 22.3% **C. 21.4% D. 20.7%

please write the steps and fomrulas to questions 38 and question 39, please do not skip steps

**state the correct answers.