Computing the standard deviation for a portfolio of two risky investments) Mary Guilott ecently graduated from college and is evaltuating an investment in tw ompanies common stock She has collected the folloing infomation about the common stock of Fim A and B a. It Mary decides to invest 10 percent of her money in Firm A's common stock and 90 percent in Fim B's common stock, what is the expected rate of return and the standard deviation of the portfolio return? 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 return and the standard deviation of the portfolio return? 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 portolio risk when combining risky assets in a portfolio a. Il Mary decides to invest 10% of her money in Firm A's common stock and 90% in Frm 's common stock and the correlation coer cent between he two stocks is 030, then the expected rate of returnin the portfolio is % (Round to two dec mal places) The standard deveton in the portfolio is 1% (Round to two deamal places) b. Il Mary decides to invest 90% of her money n Frm As common stock and 10% in Firm s common stock and tho corre labon co fici 030 then the expected rate of return in the portfolos (Round to two decrnal places) t between the two stocks is The standard dovation in the portfolio is % (Round to two decinal pinoes ) c. It Mary decides o in est 10% o er mrey n Fim As common s ock an n Fem 's common stock and the correlaton coemc ent between the two stocks -030, then theoxpected rate of 'ehm nthe portfo lo is% (Round to two dec mai piacos) The standard devahon in the portfolio is % (Round to two decimal places) Mary deodes lo invest 90% of her money in Frm As com mon stock and 10% n Firm Bs common stock and the correlation coeficient between the hwo stocks is -0.30 then the expected rate of return n the porti lo s % (Round to two deonal places ) Click to select your answer(s)