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Given the returns of two stocks J and K in the table below over the next 4 years. Find the expected returnand standard deviation of

Given the returns of two stocks J and K in the table below over the next 4 years. Find the expected returnand standard deviation of holding a portfolio of 40% of stock J and 60% in stock K over the next 4 years:

Stock J

Stock K

2010

10%

9%

2011

12%

8%

2012

13%

10%

2013

15%

11%

A) 10.6% and 1.34%

B) 10.6% and 1.79%

C) 10.6% and 1.16%

D) 14.3% and 2.02%

Answer:A

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