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Stocks A and B have the following retums Stock A 0.10 0.07 0.15 -0.05 0.08 Stock E 0.06 0.02 0.05 0.01 -0.02 4 a. What
Stocks A and B have the following retums Stock A 0.10 0.07 0.15 -0.05 0.08 Stock E 0.06 0.02 0.05 0.01 -0.02 4 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 A is 0.070. (Round to three decimal places.) The expected returm for stock B is.024. (Round to three decimal places.) b. What are the standard deviations of the returns of the two stocks? The standard deviation of the return for stock A is 0.0738. (Round to four decimal places.) The standard deviation of the return for stock B is 0.0321. (Round to four decimal places.) 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? The expected return for the portfolio is(Round to four decimal places.)
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