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Question 2: Consider the following probability distribution for stocks A and B: a.The expected rates of return of stocks A and B are _____ and

Question 2: Consider the following probability distribution for stocks A and B:

a.The expected rates of return of stocks A and B are _____ and _____, respectively.(2 Marks)

b.The standard deviations of stocks A and B are _____ and _____, respectively.(2 Marks)

c.What is the coefficient of correlation between A and B ? (2 Marks)

d.If you invest 35% of your money in A and 65% in B, what would be your portfolio's expected rate of return and standard deviation?(4 Marks)

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