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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 Stock B

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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 Stock B 1 0.08 0.05 2 0.05 0.01 3 0.13 0.05 4 -0.02 0.02 5 0.09 -0.03 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 0.46, what is the expected return and standard deviation of a portfolio of 78% stock A and 22% stock B a. What are the expected returns of the two stocks? The expected return for stock Ais 0.066. (Round to three decimal places.) The expected return for stock B is 0.02. (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 0.0559. (Round to four decimal places.) The standard deviation of the return for stock B is 0.03317. (Round to four decimal places.) c. If their correlation is 0.46, what is the expected return and standard deviation of a portfolio of 78% stock A and 22% stock B The expected return for the portfolio is 0.05588. (Round to four decimal places.) The standard deviation of the return for the portfolio is (Round to four decimal places.) Stocks A and B have the following returns: (Click on the following icon in order to copy its contents into a spreadsheet.) Stock Stock B 1 0.08 0.05 2 0.05 0.01 3 0.13 0.05 4 -0.02 0.02 5 0.09 -0.03 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 0.46, what is the expected return and standard deviation of a portfolio of 78% stock A and 22% stock B a. What are the expected returns of the two stocks? The expected return for stock Ais 0.066. (Round to three decimal places.) The expected return for stock B is 0.02. (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 0.0559. (Round to four decimal places.) The standard deviation of the return for stock B is 0.03317. (Round to four decimal places.) c. If their correlation is 0.46, what is the expected return and standard deviation of a portfolio of 78% stock A and 22% stock B The expected return for the portfolio is 0.05588. (Round to four decimal places.) The standard deviation of the return for the portfolio is (Round to four decimal places.)

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