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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.) 1 2
Stocks A and B have the following returns: (Click on the following icon @ in order to copy its contents into a spreadsheet.) 1 2 Stock A 0.11 0.06 0.14 -0.02 0.09 Stock B 0.07 0.03 0.05 0.01 -0.05 3 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 0.43, what is the expected return and standard deviation of a portfolio of 71% stock A and 29% 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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