problem 6-6

E(R1)=0.13E(R2)=0.17E(1)=0.05E(2)=0.06 Calculate the expected returns and expected standard deviations of a two-stock portfolio having a correlation coefficient of 0.75 under the conditions given below. Do nound intermediate calculations. Round your answers to four decimal places. a. w1=1.00 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: b. w1=0.70 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: c. w1=0.50 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: d. w1=0.25 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: e. w1=0.05 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: Choose the correct risk-return graph for weights from parts (a) through (e) when ri,j=0.75;0.00;0.75. The correct graph is B. D