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Given: E(R1) = 0.14 E(R2) = 0.20 E(01) = 0.03 E(02) = 0.04 Calculate the expected returns and expected standard deviations of a two-stock portfolio

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Given: E(R1) = 0.14 E(R2) = 0.20 E(01) = 0.03 E(02) = 0.04 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. a. 1,2 = 1.00 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: b. 71,2 = 0.60 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: c. 12 = 0.25 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: d. 11,2 = 0.00 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: e. 11,2 -0.25 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: 1. 11,2 = -0.60 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: 9. 71,2 = -1.00 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: Given: E(R) - 0.14 E(R2) = 0.20 E(01) - 0.03 (02) - 0.04 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 give 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. a. - 1.00 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: b.11.2-0.60 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: C. 11.2 - 0.25 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: d. 112 -0.00 Expected return of a two-stock portfolio: Expected standard deviation of a two stock portfolio: Expected standard deviation of a two-stock portfolio: C. 11,2 = 0.25 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: d. 11,2 = 0.00 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: e. 11,2 = -0.25 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: f. 71,2 = -0.60 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: 9. 71,2 = -1.00 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio

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