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Stock A Stock B 0.10 0.06 0.07 0.02 0.15 0.05 -0.05 0.01 0.08 -0.02 a. What are the expected retums of the two stocks? b.

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Stock A Stock B 0.10 0.06 0.07 0.02 0.15 0.05 -0.05 0.01 0.08 -0.02 a. What are the expected retums of the two stocks? b. What are the standard deviations of the returns of the two stocks? c. If their correlation is 0.46, what is the expected return and standard deviation of a portfolio of 70% stock A and 30% stock B? 12446 3

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