c. If their correlation is 0.47, what is the expected return and standard deviation of a portfolio of 62% stock A and 38% stock B?

TABLE 12.3 Estimated Annual Volatilities and Correlations for Selected Stocks (Based on Monthly Returns, January 2009 December 2018) Standard Deviation Microsoft 22% Starbucks 20% Netflix 62% Coca-Cola 13% McDonald's 13% Cisco 24% Boeing 23% Microsoft 1 0.29 0.23 0.32 0.33 0.52 0.31 Starbucks 0.29 1 0.05 0.30 0.40 0.36 0.21 Netflix 0.23 0.05 1 0.04 0.00 0.10 0.19 Coca-Cola 0.32 0.30 -0.04 1 0.53 0.11 0.30 McDonald's 0.33 0.40 0.00 0.53 1 0.22 0.24 0.36 0.11 0.22 1 0.43 Cisco Boeing 0.52 0.31 0.10 0.19 0.21 0.30 0.24 0.43 1 Source: Authors' calculations based on data from Yahoo Finance Print Done TABLE 12.3 Estimated Annual Volatilities and Correlations for Selected Stocks (Based on Monthly Returns, January 2009 December 2018) Standard Deviation Microsoft 22% Starbucks 20% Netflix 62% Coca-Cola 13% McDonald's 13% Cisco 24% Boeing 23% Microsoft 1 0.29 0.23 0.32 0.33 0.52 0.31 Starbucks 0.29 1 0.05 0.30 0.40 0.36 0.21 Netflix 0.23 0.05 1 0.04 0.00 0.10 0.19 Coca-Cola 0.32 0.30 -0.04 1 0.53 0.11 0.30 McDonald's 0.33 0.40 0.00 0.53 1 0.22 0.24 0.36 0.11 0.22 1 0.43 Cisco Boeing 0.52 0.31 0.10 0.19 0.21 0.30 0.24 0.43 1 Source: Authors' calculations based on data from Yahoo Finance Print Done