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Consider the following 6 menths of coturns for 2 stocks and a portfolio of those 25 tocks: Note: The portfolit is composed of 50% of

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Consider the following 6 menths of coturns for 2 stocks and a portfolio of those 25 tocks: Note: The portfolit is composed of 50% of Stock A and 30% of S30ck B. a. What is the expected fefurn and standard deviation of returns sor each of the two stocks? b. What is the expected return and standard deviation of returns for the portolio? c. Is the porticlio more or less risky than the two shocks? Why? a. What is the expected return and standard deviabon of returns for each of the two stocks? The expectod resurn of Stock Ais 4. (Round 60 one decinal place) The expected refum of Stock B is. No. (Round to one decimal place.) The standard deviation of Stock A is (Round to flve decimal places.) The standard deviation of Stock 8 is (Round to five decintal places.) b. What is the expected return and standard deviation of retums for the portfolio? The expected return of a portfolio composed of 50% Stock A and 50% Sfock 8 is 4. (Round to one decmst place.) The standard deviation of a portlolio eemposed of 50% Slock A and 50% Stock B is (Hound to five decmal places.) A. The portfolio is less risky than the fwo stocks, it has the same expected relum but a standard deviation of 1 , compared to standard deviations of o, O4195 for both stocks. B. The porfoio is less risky than the two thocks. It has the same expected retum but a standard deviation of 0.04195, compared to standard deviations of 0 for both stocks, C. The porticlio is moee nisky than the two stocks. It has the same expected return but a standard deviation of 0 , compared to standard deviations of 0.04195 for both stocks: 0. The portelio is lews risky than the fwo stocks. It has the same expected retum but a standard deviation of 0 , compared to standard deviations of 0.04195 for both stocks. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)

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