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Stocks A and B have the following retums. . 4 Stock A Stock B 1 0.10 0.06 2 0.07 0.02 3 0.15 0.05 -0.05 0.01

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Stocks A and B have the following retums. . 4 Stock A Stock B 1 0.10 0.06 2 0.07 0.02 3 0.15 0.05 -0.05 0.01 5 0.08 -0.02 a. What are the expected returns 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? a. What are the expected returns of the two stocks? The expected return for stock Ais 0.057. (Round to three decimal places.)

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