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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.) Stock A
Stocks A and B have the following returns: (Click on the following icon in order to copy its contents into a spreadsheet.) Stock A Stock B 0.08 0.05 0.07 0.02 0.14 0.06 -0.04 0.02 0.08 -0.01 1 2 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 78% stock A and 22% stock B?
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Understanding Basic Statistics
Authors: Charles Henry Brase, Corrinne Pellillo Brase
6th Edition
978-1133525097, 1133525091, 1111827028, 978-1133110316, 1133110312, 978-1111827021
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