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Stocks A and B have the following returns: (Click on the following icon in order to copy its contents into a spreadsheet.) a. What are
Stocks A and B have the following returns: (Click on the following icon in order to copy its contents into a spreadsheet.) a. What are the expected returns of the two stocks? b. What are the standard deviations of the returns of the two stocks? a. What are the expected returns of the two stocks? The expected return for stock A is . (Round to three decimal places.) The expected return for stock B is (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 . (Round to four decimal places.) The standard deviation of the return for stock B is . (Round to four decimal places.) c. If their correlation is 0.42 , what is the expected return and standard deviation of a portfolio of 62% stock A and 38% stock B? The expected return for the portfolio is . (Round to four decimal places.) The standard deviation of the return for the portfolio is (Round to four decimal places.)
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