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Stocks A and B have the following returns: 0 1 2 3 Stock A 0.09 0.05 0.13 -0.05 0.09 Stock B 0.06 0.03 0.05 0.02

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Stocks A and B have the following returns: 0 1 2 3 Stock A 0.09 0.05 0.13 -0.05 0.09 Stock B 0.06 0.03 0.05 0.02 -0.03 4 5 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 0.45, what is the expected return and standard deviation of a portfolio of 72% stock A and 28% stock B? a. What are the expected returns of the two stocks? The expected return for stock A is (Round to three decimal places.)

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