Score: 0 of 3 pts 4 of 6 (4 complete) HW Score: 55%, 6.6 of 12 pts P8-3 (similar to) Question Help (Computing the standard deviation for a portfolio of two risky investments) Mary Gullott recently graduated from Nichols State University and is ardous to begin investing her meager savings as a way of applying what she has leamed in business School Specifically, she is evaluating an investment in a portfolio comprised of two firms common stock. She has collected the following information about the common stock of Firm A and Firm B m a. It Mary invests halt her money in each of the two common stock, what is the portfolio's expected rate of return and standard deviation in portfolio return? b. Answer part a where the correlation between the two common stock investments is equal to zero c. Answer part a where the correlation between the two common stock investments is equal to +1 d. Answer part a where the correlation between the two common stock Investments is equal to - 1 e. Using your responses to questions a d , describe the relationship between the correlation and the risk and return of the portfolio a. I Mary decides to invest 50% of her money in Firm A's common stock and 50% in Firm B's common stock and the correlation between the two stocks is 0.40, then the expected rate of retum in the portfolio is %. (Round to two decimal places) Enter your answer in the answer box and then click Check Answer & CCA o parts CHASE remaining 459 PM A to search 10/14/2011 Westio the standard deviation for a portfolio of two risky investments) Mary Guilott recently graduated from Nichols State University and is anxious to be savings as a way of applying what she has learned in business School Specifically, she is evaluating an investment in a portfolio comprised of two firm is collected the following information about the common stock of Emmand.Elam.Bir i Data Table prtfolio return? ests half her money in rt a where the correlati ut a where the correlati rt a where the correlati responses to questior cides to invest 50% of e of return in the portfol Expected Return 0.18 0.17 Firm A's common stock Firm B's common stock Correlation coefficient Standard Deviation 0.16 0.25 wo stocks is 0.40, the 0.40 Done nswer in the answer box and then click Check Answer Clear All Check