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Stocks A and B have the following? returns: Stock A Stock B 1 0.11 0.05 2 0.06 0.02 3 0.15 0.05 4 -0.04 0.02 5

Stocks A and B have the following? returns:

Stock A Stock B 1 0.11 0.05 2 0.06 0.02 3 0.15 0.05 4 -0.04 0.02 5 0.08 -0.04

a. What are the expected returns of ?stock A and Stock B?

b. What are the standard deviations of the returns of stock A and stock B?

c. If their correlation is 0.43?, what is the expected return and standard deviation of a portfolio of 55?% stock A and 45?% stock? B?

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