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Homework help!! Stocks A and B have the following retums: Stock A 0.11 0.06 Stock B 0.05 0.03 0.04 0.02 0.14 -0.02 0.07 -0.05 a.
Homework help!!
Stocks A and B have the following retums: Stock A 0.11 0.06 Stock B 0.05 0.03 0.04 0.02 0.14 -0.02 0.07 -0.05 a. What are the expected retums of the two stocks? b. What are the standard deviations of the returns of the two stocks? c. If their correlation is 0.45, what is the expected return and standard deviation of a portfolio of 72% stock A and 28% stock B? a. What are the expected retums of the two stocks? The expected return for stock Ais . (Round to three decimal places.) The expected return for stock B is (Round to three decimal places.) b. What are the standard deviations of the returns of the two stocks? The standard deviation of the return for stock Ais (Round to four decimal places.) The standard deviation of the return for stock B is . (Round to four decimal places.) c. If their correlation is 0.45, what is the expected return and standard deviation of a portfolio of 72% stock A and 28% stock B? The expected return for the portfolio is . (Round to four decimal places.) Step by Step Solution
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