Question
Suppose Ford Motor stock has an expected return of 19 % and a volatility of 39 %, and Molson Coors Brewing has an expected return
Suppose Ford Motor stock has an expected return of 19 % and a volatility of 39 %, and Molson Coors Brewing has an expected return of 14 % and a volatility of 30 %. If the two stocks are uncorrelated, a. What is the expected return and volatility of a portfolio consisting of 74 % Ford Motor stock and 26 % of Molson Coors Brewing stock? a. What is the expected return and volatility of a portfolio of 74 % Ford Motor stock and 26 % of Molson Coors Brewing stock? The expected return of the portfolio is ____ . (Round to two decimal places.) The volatility of the portfolio is ______. (Round to two decimal places.) b. Given your answer to (a), is investing all of your money in Molson Coors stock an efficient portfolio of these two stocks?(Select the best choice below.) A. Cannot determine from the given information. B. No. C. Yes. c. Is investing all of your money in Ford Motor an efficient portfolio of these two stocks? (Select the best choice below.) A. Cannot determine from the given information. B. No. C. Yes.
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