Suppose the expected returns and standard deviations of Stocks A and B are E(R_A) = .082, E(R_B) = .142, SD_A = .352, and SD_B = .612.

a-1. Calculate the expected return of a portfolio that is composed of 27 percent Stock A and 73 percent Stock B when the correlation between the returns on A and B is .42. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Expected return

%

a-2. Calculate the standard deviation of a portfolio that is composed of 27 percent Stock A and 73 percent Stock B when the correlation between the returns on A and B is .42. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Standard deviation

%

b. Calculate the standard deviation of a portfolio with the same portfolio weights as in part (a) when the correlation coefficient between the returns on Stocks A and B is -.42. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Standard deviation

%