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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 Stock B
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 1 0.09 0.07 2 0.04 0.01 3 0.14 0.04 4 0.05 0.01 5 0.08 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 0.45, what is the expected return and standard deviation of a portfolio of 54% stock A and 46% stock B? Question content area bottom Part 1 a. What are the expected returns of the two stocks? The expected return for stock A is enter your response here. (Round to three decimal places.) Part 2 The expected return for stock B is enter your response here. (Round to three decimal places.) Part 3 b. What are the standard deviations of the returns of the two stocks? The standard deviation of the return for stock A is enter your response here. (Round to four decimal places.) Part 4 The standard deviation of the return for stock B is enter your response here. (Round to four decimal places.) Part 5 c. If their correlation is 0.45, what is the expected return and standard deviation of a portfolio of 54% stock A and 46% stock B? The expected return for the portfolio is enter your response here. (Round to four decimal places.) Part 6 The standard deviation of the return for the portfolio is enter your response here. (Round to four decimal places.)
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