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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 WN 1 2

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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 WN 1 2 3 4 5 Stock A 008 0.05 0.14 -0.02 0.09 Stock B 0.05 0.01 0.06 0.02 -0.02 a. What are the expected returns of the two stocks? b. What are the standard deviations of the retums of the two stocks? c. If their correlation is 0.47, what is the expected return and standard deviation of a portfolio of 74% stock A and 26% stock B? a. What are the expected returns of the two stocks? The expected return for stock As (Round to three decimal places.) The expected return for stock Bis (Round to three decimal places) b. What are the standard deviations of the retums of the two stocks? The standard deviation of the return for stock Ais (Round to four decimal places) (Round to four decimal places) The standard deviation of the return for stock BIS c. If their correlation is 0.47 what is the expected return and standard deviation of a portfolio of 74% stock A and 26% 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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