Stock 1 has an expected return of 5% and a standard deviation of 40%. Stock 2 has an expected return of 14% and a standard deviation of 19%. Their correlation is -0.56.

You invest 40% in stock 1 and 60% in stock 2.

Attempt 1/10 for 10 pts.

Part 1

What is the standard deviation of the portfolio?

Submit

Attempt 1/10 for 10 pts.

Part 2

What is the expected return of the portfolio?

Submit