Stocks A and B have the following returns:

a. What are the expected returns of the stock a AND stock b ?

b. What are the standard deviations of the returns of stock a and stock b?

c. If their correlation is 0.46, what is the expected return and standard deviation of a portfolio of 60% stock A and 40% stock B?

\begin{tabular}{ccc} & Stock A & Stock B \\ \hline 1 & 0.08 & 0.07 \\ 2 & 0.04 & 0.03 \\ 3 & 0.13 & 0.05 \\ 4 & -0.02 & 0.01 \\ 5 & 0.09 & -0.01 \end{tabular}