Given E ( R 1 ) 0 09 E ( R 2 ) 0 12 E ( 1 ) 0 02 E ( 2 ) 0 06 Calculate the expected returns and expected standard deviations of a two stock portfolio in which Stock 1 has a weight of 80 percent under the conditions given below Do not round intermediate calculations Round your answers for the expected returns of a two stock portfolio to three decimal places and answers for expected standard deviations of a two stock portfolio to four decimal places r 1,2 1 00 Expected return of a two stock portfolio Expected standard deviation of a two stock portfolio r 1,2 0 80 Expected return of a two stock portfolio Expected standard deviation of a two stock portfolio r 1,2 0 10 Expected return of a two stock portfolio Expected standard deviation of a two stock portfolio r 1,2 0 00 Expected return of a two stock portfolio Expected standard deviation of a two stock portfolio r 1,2 0 10 Expected return of a two stock portfolio Expected standard deviation of a two stock portfolio r 1,2 0 80 Expected return of a two stock portfolio Expected standard deviation of a two stock portfolio r 1,2 1 00 Expected return of a two stock portfolio Expected standard deviation of a two stock portfolio

Question

Given  E ( R 1 )   0 09 E ( R 2 )   0 12 E ( 1 )   0 02 E ( 2 )   0 06 Calculate the expected returns and expected standard deviations of a two stock portfolio in which Stock 1 has a weight of 80 percent under the conditions given below  Do not round intermediate calculations  Round your answers for the expected returns of a two stock portfolio to three decimal places and answers for expected standard deviations of a two stock portfolio to four decimal places  r 1,2   1 00 Expected return of a two stock portfolio  Expected standard deviation of a two stock portfolio  r 1,2   0 80 Expected return of a two stock portfolio  Expected standard deviation of a two stock portfolio  r 1,2   0 10 Expected return of a two stock portfolio  Expected standard deviation of a two stock portfolio  r 1,2   0 00 Expected return of a two stock portfolio  Expected standard deviation of a two stock portfolio  r 1,2    0 10 Expected return of a two stock portfolio  Expected standard deviation of a two stock portfolio  r 1,2    0 80 Expected return of a two stock portfolio  Expected standard deviation of a two stock portfolio  r 1,2    1 00 Expected return of a two stock portfolio  Expected standard deviation of a two stock portfolio

Accepted Answer

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	E(R₁) = 0.09
	E(R₂) = 0.12
	E(₁) = 0.02
	E(₂) = 0.06

Question

Given: E ( R 1 ) = 0.09 E ( R 2 ) = 0.12 E ( 1 ) = 0.02 E ( 2 )

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