Ebenezer Scrooge has invested 45% of his money in share A and the remainder in share B. He assesses their prospects as follows:

	A		B
Expected return (%)	17		20
Standard deviation (%)	20		27
Correlation between returns		.5

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

Expected return	%
Standard deviation	%

b. How would your answer change if the correlation coefficient were 0 or .5? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

	Correlation Coefficient 0	Correlation Coefficient 0.5
Standard deviation	%	%

c. Is Mr. Scrooges portfolio better or worse than one invested entirely in share A, or is it not possible to say?

	Better
	Worse
	Not possible to say