Given:

	E(R1) = 0.13
	E(R2) = 0.15
	E(1) = 0.01
	E(2) = 0.03

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.

1. r_1,2 = 1.00

   Expected return of a two-stock portfolio:

   Expected standard deviation of a two-stock portfolio:

2. r_1,2 = 0.60

   Expected return of a two-stock portfolio:

   Expected standard deviation of a two-stock portfolio:

3. r_1,2 = 0.10

   Expected return of a two-stock portfolio:

   Expected standard deviation of a two-stock portfolio:

4. r_1,2 = 0.00

   Expected return of a two-stock portfolio:

   Expected standard deviation of a two-stock portfolio:

5. r_1,2 = -0.10

   Expected return of a two-stock portfolio:

   Expected standard deviation of a two-stock portfolio:

6. r_1,2 = -0.60

   Expected return of a two-stock portfolio:

   Expected standard deviation of a two-stock portfolio:

7. r_1,2 = -1.00

   Expected return of a two-stock portfolio:

   Expected standard deviation of a two-stock portfolio: