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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.) 12345 Stock A
Stocks A and B have the following returns: (Click on the following icon in order to copy its contents into a spreadsheet.) 12345 Stock A 0.11 0.06 0.14 -0.03 0.08 Stock B 0.04 0.03 0.06 0.03 -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 0.47, what is the expected return and standard deviation of a portfolio of 53% stock A and 47% stock B? ... a. What are the expected returns of the two stocks? A The expected return for stock A is 0.072. (Round to three decimal places.) The expected return for stock B is (Round to three decimal places.)
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