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

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

Standard deviation

%