courseweb.pitt.edu Take Test: HW6 2017-2181 Question Completion Status: QUESTION 3 The returns of Stock A and Sock B have correlation-0.4The variance of Stock A is020 and the varianoeofStock B is015. wha the variance of a portfolio that invests $5, n Stock A and S15.000 in Stock B? OA 0.160 OB. 0.123 OG 0.101 OD. 0.232 QUESTION 4 The eoonomy wil recover (with probability 0.3), stagnate (with probabilty or enter a depression. A stock will return 35% if tho 0conomy recovers, 4% if stagnato, and-40% f depression. What is the expected return of the stock? OA-1.00% OB, 450% C, 400% QUESTION 5 The economy will ecover with prot abl ty 0.3 stagnate with probabity5. or enter a depress on. A stock wa eturn 35% if the economy recovers, 4% if stagnation, and-40% depression. What is the variance of stock returns? OA 0.1424 B0.2599 C0.0675 Cliek Sqve and Submit to saue and submit. Clck Save Al Answers to save all answers. Save All Ane