The expected returns and standard deviations of risky stocks A, B, C are given as follows.

Assume a portfolio of the three stocks is equally weighted (1/3, 1/3, 1/3). What are the expected return and standard deviation of the portfolio? [choose the closest answer]

		14.5% and 26.08%
		11.5% and 26.08%
		11.5% and 31.75%
		14.5% and 31.75%

A B Expected Return Standard Deviation 11% 30% 14.5% 45% 9% 30% Correlations A BC 1.0 .3 .15 .3 1.0.45 .15 .45 1.0