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The expected return on Big Time Toys is 7 percent and its standard deviation is 22 percent. The expected return on Chemical Industries is -2
The expected return on Big Time Toys is 7 percent and its standard deviation is 22 percent. The expected return on Chemical Industries is -2 percent and its standard deviation is 13 percent. Suppose the correlation coefficient for the two stocks' returns is 0. What are the expected and standard deviation of a portfolio with 70 percent invested in Big Time Toys and the rest in Chemical Industries? Enter your answers as percentages rounded to 2 decimal places. Do not include the percentage sign in your answers.
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