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Following is information about the Volvo, AstraZeneca and Ericsson stocks respectively: Volvo Expected return: 12% Standard deviation of return: 30% Correlation between Volvo and Astra

Following is information about the Volvo, AstraZeneca and Ericsson stocks respectively:

Volvo

Expected return: 12% Standard deviation of return: 30% Correlation between Volvo and Astra Zenica returns: 0.2 Correlation between Volvo and Ericsson returns: 0.6

AstraZeneca

Expected return: 8% Standard deviation of return: 20% Correlation between Astra Zenica and Ericsson returns: 0.3

Ericsson

Expected return: 14% Standard deviation of return: 35%

Calculate the expected return and standard deviation of a portfolio with 50% of the portfolio value in Volvo, 30% in AstraZeneca and 20% in Ericsson.

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