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Below is annual stock return data on ABC Corp and XYZ, Inc. Year ABC XYZ 2010 10% -3% 2011 20% 0% 2012 -10% 20% 2013

Below is annual stock return data on ABC Corp and XYZ, Inc.

Year ABC XYZ
2010 10% -3%
2011 20% 0%
2012 -10% 20%
2013 3%

10%

average rate of return for ABC 5.75% for XYZ 6.75%

standard deviation for ABC 12.61% for XYZ 10.44%

What is the expected portfolio return on a portfolio comprised of i. 25% ABC and 75% XYZ? ii. 50% ABC and 50% XYZ?

(Round answers to 3 decimal places)

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