Next, consider a two-asset portfolio consisting of stock

A

with

w_(A)=75%

and an expected return

r_(A)=5%

and a standard deviation of

\\\\sigma _(A)=4%

, and stock B with

r_(B)=8%

and

\\\\sigma _(B)=10%

. Assuming that the correlation between stocks

A

and

B

is zero, the expected return to the portfollo is , and the portfolio's standard deviation is

Next, consider a two-asset portfolio consisting of stock A with wA=75% and an expected return rA=5% and a standard deviation of A=4%, and stock B with rB=8% and B=10%. Assuming that the correlation between stocks A and B is zero, the expected return to the portfolio is , and the portfolio's standard deviation is