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The table below presents a probability distribution for the returns to stocks X and Y. State Stock X Stock Y Bear 0.07 -0.09 Probability 0.3
The table below presents a probability distribution for the returns to stocks X and Y. State Stock X Stock Y Bear 0.07 -0.09 Probability 0.3 0.5 0.2 Neutral 0.11 0.14 0.26 Bull -0.16 Which of the following is closest to the expected return and standard deviation of the portfolio that allocates 65% to Stock X and 35% to Stock Y? Expected retur: -0.25%; Standard deviation: 10.35% O Expected return: 5.50%: Standard deviation: 6.19% O Expected return: 6.19%; Standard deviation: 5.94% Expected return: 4.40%: Standard deviation: 11.71% Expected return: 5.94%: Standard deviation: 11.64%
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