Computing the standard deviation for a portfolio of two risky investments) Mary Cut recently graduated from college and is evaluating an investment in two compare common stock. She has colected the flowing rmation about The common stock of Fim A and Fim B Mary decides to invest 10 percent of her money in Firm A's common stock and 90 percent in Firm B's common slook, what is the expected rate of tum and the standard deviation of the po Mary decides to invest 90 percent of her money in Firm A's common stock and 10 percent in Fim B's common stock, what is the expected rate of retum and the standard deviation of the porfolio tam Recompute your responses to both questions a and b, where the corelation between the two firms stock -0.20 d. Summarize what your analysis fells you about portalo nak when combining risky assets in a portfol If Mary decides to invest 10% of her money in Firm A's common stock and 90% in Firm's common stock and the complation coefficient been the be decimal places) The standard deviation in the portfolio sound to two decimal places.) ks is 0.20, then the expected rate of retum in the port b. If Mary decides to invest 90% of her money in Fem A's common stock and 10% in Fim B's common stock and the compilation coeficient between the two stocks is 0.20, then the expected rate of retum in the pound to decimal places) The standard deviation in the ports is found to be decimal places.) Mary decides to invest 10% of her money in Fem A's common stock and 30% in Few common stock and the conation coefficient between the two lock decimal places) The standard deviation in the portfolio Round to two decimal places) Mary decides to invest 80% of her money in Firm A's common stock and 10% in Fem somon alock and the conation coeficient between the two locks decmal places) The standard deviation of the portfolio decimal places) d. What does your analysis tell you about portfoto mox when combining it (b) 2.2. then the expected rate of run in the portal (Pound tow OA You can maintain the some retum in a portiotout were the stocks are poly cottage comes of bed by sing a higher propone of the portf stock with higher standard deviation, this however will no OB. You can maintain the same tum pooks but lower is more the stocks a posted her than necatively conslated. comsation of the two socks is the same can be dir Time Ramaining: 02:38:27 Next