Suppose the expected returns and standard deviations of Stocks A and B are E(R_A) = .089, E(R_B) = .149, _A = .359, and _B = .619.

a-1.	Calculate the expected return of a portfolio that is composed of 34 percent A and 66 percent B when the correlation between the returns on A and B is .49. (Do not round intermediate calculations. 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 34 percent A and 66 percent B when the correlation between the returns on A and B is .49. (Do not round intermediate calculations. 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 A and B is .49. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Standard deviation

%