Last one is higher/lower

The realized returns for stock A and stock B from 2004-2009 are provided in the table below Year 2004 2005 2006 2007 2008 2009 Stock A -9% 21% 6% -4% 3% 10% Stock B 20% 6% 29% -4% -9% 24% (a) Calculate the expected returns (as percents) over the next year for the stocks assuming the average annual realized returns and past volatility from 2004-2009 are unbiased estimators of expected returns and future volatility. stock A stock B Calculate the volatilities (as percents) for returns over the next year for the stocks. (Round your answers to two decimal places.) stock A stock B (b) Calculate the expected return and volatility (as percents) of an equally-weighted portfolio. The correlation between the returns of the two stocks is 6.27%. (Round your answer for volatility to two decimal places.) expected return volatility % (c) Explain why the portfolio has a lower volatility than the average volatility of the two stocks. The correlation of 6.27% is low, so most of factors that affect the returns of one stock have on the returns of the other asset. Consequently, the risk is ---Select--- when they are combined in a portfolio. ---Select-- --Select-- no impact a large impact You observe a portfolio for five years and determine that its average annual return is 13% and the standard deviation of its returns is 22%. Can you be 95% confident that this portfolio will not lose more than 35% of its value next year? O Yes