(Computing the standard deviation for a portfolio of two risky investments) Mary Gillot recenty graduated from colfege and is evaluating an inventrient in two companies' common slock. She has collocted the following information about the common stock of Firm A and Firm B: a. If Mary decides to irvest 10 percent of her money in Fim A's comemon stock and 90 percent in Firm B's common block, what is the expectod rile of ielum and ite standard deviation of the porttolio return? standard devaton of the portfolio return? c. Recompute your responses to both questions a and b, where the correlation botween the fwo fins's' stock retirns is 0.30 The standard deviation in the portiolio is - (Round to two decimal placen.) The stantard deviabon in the pertices is (Computing the standard deviation for a portfolio of two risky investments) Mary Guilott recently graduated from college and is evaluating an invesiment in tiwa comparies' common stock. She has collecled the following information about the common stock of Firm A and Firm B: 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 retuin and thin standard deviation of the portfolio retum? b. If Mary decides to imvest 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 refuth and the standard deviation of the portfolio retum? c. Recompute your responses to both questions a and b, where the correlabon between the two firms' stock returns is - 0.30. d. Summarize what your analysits telis you about portfolio risk when combining risky assats in a portfolio. b. If Mary decides to invest 90% of her money in Firm A's common stock and 105 in Firm B's common stock and the correlation coefficient between the fiso tiocita is 0,30 , then the expected rale of roturn in the portlotio is \%. (Round to two docimal places.) The witandard deviation in the portiolio is Va (Round to two decimal placesi) c. If Mary decides to invest 10% of her money in Firm A's corrmon stock and 90% in Firm B's common stock and the carrelabion coilticienit between the two stocks is 0.30, then the expecied rate of return in the portidio is W. (Routhd to two decimal piaces.) Tho standard deviation in the bortfotio is is 0.30, then the expectod rate of retum in the portiolio is 5. (Round to two decimal places.) The standard deviation in the portlois in 0.30, then the expected rate of rotum in the portfolio is 7. (Round to two docimal placess) The standard deviation of the porticio is (Round to foro decimal places.) The standard deviation of the portfolio is \%. (Round to two decirtal placess.) d. What does your analysis tell you about porttolio risk when combining risky assets in a portfolio? (Select the best choice bolow.) A. You can maintain the same return in a portfolio but lower risk if the stocks are negatively correlated rather than positvely corrolated Regarchess of cortelation, risk can alsa be lowered by investing a tighter proportion of the poiffolia in slock with higher standard deviation, this however will reduce ietum B. You can maintain the same return in a portiolio but lower risk it the stocks are positively correlated rather than negatively correlated. Regardless of correlation, risk can also be lowered by investing a higher proportion of the portfolio in stock with higher standard deviation, this however will increase toturn. c. You can maintain the same retum in a portifilo but lower risk more if the slocks are negatively correlated rather than posifively correbled. If correlation of two stocks in the same, rigk can also be lowered by investing a higher proportion of the portfolio in stock with lower standiad deviation, this however will effect return. the two stocks is the same, risk can also be lowered by irvestang a higher proportion of the pottolo in alock weth frwor itandard doviation, the honever with reduce retum. Data table (Computing the standard deviation for a portfolio of two risky investments) Mary Gillot recenty graduated from colfege and is evaluating an inventrient in two companies' common slock. She has collocted the following information about the common stock of Firm A and Firm B: a. If Mary decides to irvest 10 percent of her money in Fim A's comemon stock and 90 percent in Firm B's common block, what is the expectod rile of ielum and ite standard deviation of the porttolio return? standard devaton of the portfolio return? c. Recompute your responses to both questions a and b, where the correlation botween the fwo fins's' stock retirns is 0.30 The standard deviation in the portiolio is - (Round to two decimal placen.) The stantard deviabon in the pertices is (Computing the standard deviation for a portfolio of two risky investments) Mary Guilott recently graduated from college and is evaluating an invesiment in tiwa comparies' common stock. She has collecled the following information about the common stock of Firm A and Firm B: 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 retuin and thin standard deviation of the portfolio retum? b. If Mary decides to imvest 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 refuth and the standard deviation of the portfolio retum? c. Recompute your responses to both questions a and b, where the correlabon between the two firms' stock returns is - 0.30. d. Summarize what your analysits telis you about portfolio risk when combining risky assats in a portfolio. b. If Mary decides to invest 90% of her money in Firm A's common stock and 105 in Firm B's common stock and the correlation coefficient between the fiso tiocita is 0,30 , then the expected rale of roturn in the portlotio is \%. (Round to two docimal places.) The witandard deviation in the portiolio is Va (Round to two decimal placesi) c. If Mary decides to invest 10% of her money in Firm A's corrmon stock and 90% in Firm B's common stock and the carrelabion coilticienit between the two stocks is 0.30, then the expecied rate of return in the portidio is W. (Routhd to two decimal piaces.) Tho standard deviation in the bortfotio is is 0.30, then the expectod rate of retum in the portiolio is 5. (Round to two decimal places.) The standard deviation in the portlois in 0.30, then the expected rate of rotum in the portfolio is 7. (Round to two docimal placess) The standard deviation of the porticio is (Round to foro decimal places.) The standard deviation of the portfolio is \%. (Round to two decirtal placess.) d. What does your analysis tell you about porttolio risk when combining risky assets in a portfolio? (Select the best choice bolow.) A. You can maintain the same return in a portfolio but lower risk if the stocks are negatively correlated rather than positvely corrolated Regarchess of cortelation, risk can alsa be lowered by investing a tighter proportion of the poiffolia in slock with higher standard deviation, this however will reduce ietum B. You can maintain the same return in a portiolio but lower risk it the stocks are positively correlated rather than negatively correlated. Regardless of correlation, risk can also be lowered by investing a higher proportion of the portfolio in stock with higher standard deviation, this however will increase toturn. c. You can maintain the same retum in a portifilo but lower risk more if the slocks are negatively correlated rather than posifively correbled. If correlation of two stocks in the same, rigk can also be lowered by investing a higher proportion of the portfolio in stock with lower standiad deviation, this however will effect return. the two stocks is the same, risk can also be lowered by irvestang a higher proportion of the pottolo in alock weth frwor itandard doviation, the honever with reduce retum. Data table