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An investor is considering investing in the following two stocks, A and B: E(R) 02 Stock A 8% 0.15 Stock B 5% 0.07 The

An investor is considering investing in the following two stocks, A and B: E(R) 02 Stock A 8% 0.15 Stock B 5% 0.07 The correlation between the two securities returns is -0.5. Calculate the expected return and standard deviation of the following three portfolios: Proportions (%) Portfolio Stock A Stock B 1 30 70 2 75 25 3 100 0 [11 marks]

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