investment managment

MC Qu. 05 An investor can design a risky portfolio ... An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 14% and a standard deviation of return of 24.0%. Stock B has an expected return of 10% and a standard deviation of return of 4%. The correlation coefficient between the returns of A and B is 0.50. The risk-free rate of return is 8%. The proportion of the optimal risky portfolio that should be invested in stock A is 0 0% O 50% 26% oo 58% MC Qu. 06 An investor can design a risky portfolio ... An investor can design a risky portfolio based on two stocks, A and B. and a standard deviation of return of 24%. Stock B has an expected return of 9% and a standard deviation of efficient between the returns of A and B is.5. The risk-free rate of return is 5%. The proportion of the optimal risky portfolio that should be invested in stock B is approximately Oooo MC Qu. 04 The standard deviation of return on investment ... The standard deviation of return on investment A is 27, while the standard deviation of return on investment Bis 22. If the correlation coefficient between the returns on A and B is -253, the covariance of returns on A and B is 0 - 2061 -.0150 0.0150 0 2061