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deviation for a portfolio of two risky investments) Mary Guilott recently graduated from Nichols State University and s as a way of applying what she

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deviation for a portfolio of two risky investments) Mary Guilott recently graduated from Nichols State University and s as a way of applying what she has learned in business school. Specifically, she is evaluating an investment in a portfo as collected the following information about the common stock of Firm A and Firm B: oney in each of the two common stocks, what is the portfolio's expected rate of return and standard deviation in portfolio Dom i Data Table Com com que 5509 pd the two ste Firm A's common stock Firm B's common stock Correlation coefficient Expected Return 0.16 0.17 0.50 Standard Deviation 0.19 0.24 Print Done Ins Clear All Check An P8-3 (similar to) E Question Help (Computing the standard deviation for a portfolio of two risky investments) Mary Gulott recently graduated from Nichols State University and is ardous to begin investing her meager savings as a way of applying what she has learned in business School Specifically, she is evaluating an investment in a portfolio comprised of two firms common stock. She has collected the following information about the common stock of Firm A and Firm B. af Mary invests half her money in each of the two common stocks, what is the portfolio's expected rate of return and standard deviation in portfolio return? b. Answer part a where the correlation between the two common stock investments is equal to zero c. Answer part a where the correlation between the two common stock investments is equal to +1 d. Answer part a where the correlation between the two common stock investments is equal to - 1 e. Using your responses to questions a d, describe the relationship between the correlation and the risk and return of the portfolio a. I Mary decides to invest 50% of her money in Firm A's common stock and 50% in Firm B's common stock and the correlation between the two stocks is 0.50, then the expected rate of return in the portfolio is L% (Round to two decimal places)

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