Ebenezer Scrooge has invested 40% of his money in share A and the remainder in share B. He assesses their prospects as follows:

	A		B
Expected return (%)	13		23
Standard deviation (%)	16		29
Correlation between returns		.3

a.	What are the expected return and standard deviation of returns on his portfolio? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Expected return	%
Standard deviation	%

b.	How would your answer change if the correlation coefficient were 0 or .3? (Round your answers to 2 decimal places.)

	Correlation Coefficient 0	Correlation Coefficient 0.3
Standard deviation	%	%