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please answer easily to understand 6. The returns on stocks A and B are perfectly negatively correlated (P AB =- ). Stock A has an

please answer easily to understand

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6. The returns on stocks A and B are perfectly negatively correlated (P AB =- ). Stock A has an expected return of 21 % and a standard deviation of return of 40%. Stock B has a standard deviation of return of 20%. The risk-free rate of interest is 11 %. What must be the expected return to stock B? 7. Consider the situation of an insurance company which offers personal injury policies to professional hockey players. The typical payoffs to one of these policies are forecast to be the following: Prob. 0.01 Payoff -5,000,000 State Athlete is seriously injured Athlete is not injured seriously 0.99 60,000 What is the expected profit per policy? Assuming the returns are uncorrelated policy to policy, how many policies must be sold in order for the standard deviation of the firm's overall portfolio of injury policies to be below $10,000

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