Consider the following expected annual returns and standard deviations:

Stock	Expected Return	Standard Deviation
Boeing	5.5%	12.9%
Nordstrom	7.2%	14.5%

What would be the one-year expected return and standard deviation of a portfolio that consists of 1,000 shares of Boeing and 5,000 shares of Nordstrom stocks?

Boeing trades at $221.24 a share and Nordstrom trades at $31.47 a share as of today. Suppose the correlation coefficient between the annual stock returns of the two companies is 0.

• A. Expected return: 4.61%; Standard deviation: 11.05%

• B. Expected return: 5.13%; Standard deviation: 22.7%

• C. Expected return: 6.21%; Standard deviation: 9.65%

• D. Expected return: 6.92%; Standard deviation: 12.27%

E. Expected return: 6.35%; Standard deviation: 13.70%