(Computing the standard deviation for a portfolio of two risky investments) Mary Guilott recently graduated from college and is evaluating an invest collected the following information about the common stock of Firm A and Firm B: 3 a. If Mary decides to invest 10 percent of her money in Firm A's common stock and 90 percent in Firm B's common stock, what is the expected rate of ret b. If Mary decides to invest 90 percent of her money in Firm A's common stock and 10 percent in Firm B's common stock, what is the expected rate of ret c. Recompute your responses to both questions a and b, where the correlation between the two firms' stock returns is - 0.30. d. Summarize what your analysis tells you about portfolio risk when combining risky assets in a portfolio. b. If Mary decides to invest 90% of her money in Firm A's common stock and 10% in Firm B's common stock and the correlation coefficient between the t portfolio is %. (Round to two decimal places.) The standard deviation in the portfolio is %. (Round to two decimal places.) c. If Mary decides to invest 10% of her money in Firm A's common stock and 90% in Firm B's common stock and the correlation coefficient between the ty the portfolio is %. (Round to two decimal places.) The standard deviation in the portfolio is %. (Round to two decimal places.) If Mary decides to invest 90% of her money in Firm A's common stock and 10% in Firm B's common stock and the correlation coefficient between the two portfolio is %. (Round to two decimal places.) The standard deviation of the portfolio is %. (Round to two decimal places.) d. What does your analysis tell you about portfolio risk when combining risky assets in a portfolio? (Select the best choice below.) Data Table Expected Returns 0.16 0.08 0.30 Standard Deviation 0.13 0.08 Firm A's common stock Firm B's common stock Correlation coefficient Print Done