Problem $7-19$ Portfolio risk

Hyacinth Macaw invests $72\%$ of her funds in stock I and the balance in stock J$.$ The standard deviation of returns on I is $12\%,$ and on $J$ it

is $25\%.$

Note: Use decimals, not percents, in your calculations.

a$.$ Calculate the variance and standard deviation of portfolio returns, assuming the correlation between the returns is $1.$

b$.$ Calculate the variance and standard deviation of portfolio returns, assuming the correlation is $0\mathrm{.}6.$

c$.$ Calculate the variance and standard deviation of portfolio returns, assuming the correlation is $0.$

Note: For all requirements, do not round intermediate calculations. Round your answers to $4$ decimal places.

c$.$ Variance

Standard deviation