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Consider the following 6 months of returns for 2 stocks and a portfolio of those 2 stocks: Note: The portfolio is composed of 50% of

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Consider the following 6 months of returns for 2 stocks and a portfolio of those 2 stocks: Note: The portfolio is composed of 50% of Stock A and 50% of Stock B. a. What is the expected return and standard deviation of returns for each of the two stocks? b. What is the expected return and standard deviation of returns for the portfolio? c. Is the portfolio more or less risky than the two stocks? Why? Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into spreadsheet.) Stock A Stock B Jan 3% 0% Feb 6% - 3% Mar -5% 8% Apr 4% - 1% May - 1% 4% Jun 5% - 2% Portfolio 1.5% 1.5% 1.5% 1.5% 1.5% 1.5%

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