This Question: 1 pt 4 4 of 5 (3 complete) v I p I This Quiz: 5 pis possible {'1 (Computing the standard deviation for a portfolio of two risky investments) Mary Guilott recently graduated from college and is evaluating an investment in two companies' common stock. She has collected the following information about the common stock of Firm Aand Firm B: E . 99p? a. decimal places.) The smndard deviation in the portfolio is %. (Round to two decimal places.) decimal places.) If Mary decides to invest 10 percent of her money in Firm A's common stock and 90 percent in Firm B's common stock, what is the expected rate of return and the standard deviation of the portfolio return? If Mary decides to invest 90 percent of her money in Firm A's common stock and 10 percent in Firm B's common stock, what is the expected rate of return and the standard deviation of the portfolio return? Recompute your responses to both questions a and b, where the correlation between the two rms' stock returns is - 0.20. Summarize what your analysis tells you about portfolio risk when combining risky assets in a portfolio. If Mary decides to invest 10% of her money in Firm A's common stock and 90% in Firm B's common stock and the correlation coefcient between the two stocks is 0.20, then the expected rate of return in the portfolio is %. (Round to two lf Mary decides to invest 90% of her money in Firm A's common stock and 10% in Firm B's common stock and the correlation coefcient between the two stocks is 0.20, then the expected rate of return in the portfolio is "/0. (Round to two The standard deviation in the portfolio is %. (Round to two decimal places.) c. decimal places.) lf Mary decides to invest 10% of her money in Firm A's common stock and 90% in Firm B's common stock and the correlation coefcient between the two stocks is 0.20, then the expected rate of return in the portfolio is The standard deviation in the portfolio is %. (Round to two decimal places.) It Mary decides to invest 90% of her money in Firm A's common stock and 10% in Firm B's common stock and the correlation coefcient between the two stocks is - 0.20, then the expected rate of return in the portfolio is decimal places.) %. (Round to two %. (Round to two The smndard deviation of the portfolio is %. (Round to two decimal places.) d. What does your analysis tell you about portfolio risk when combining risky assets in a portfolio? (Select the best choice below.) Click to select your answer(s). This Question: 1 pt 4 of 5 (3 complete) This Quiz: 5 pts possible (Computing the standard deviation for a portfolio of two risky investments) Mary Guilott recently graduated from college and is evaluating an investment in two companies' common stock. She has collected the following information about the common stock of Firm A and Firm B: :] . a. If Mary decides to invest 10 percent of her money in Firm A's common stock and 90 percent in Firm B's common stock, what is the expected rate of return and the standard deviation of the portfolio return? b. If Mary decides to invest 90 percent of her money in Firm A's common stock and 10 percent in Firm B's common stock, what is the expected rate of return and the standard deviation of the portfolio return? c. Recompute your responses to both questions a and b, where the correlation between the two firms' stock returns is - 0.20. d. Summarize what your analysis tells you about portfolio risk when combining risky assets in a portfolio. a. If Mary decides to invest 10% of her money in Firm A's common st - X the expected rate of return in the portfolio is %. (Round to two decimal places. Data Table The standard deviation in the portfolio is %. (Round to two decimal b. If Mary decides to invest 90% of her money in Firm A's common st Expected Standard the expected rate of return in the portfolio is %. (Round to two decimal places.) Returns Deviation The standard deviation in the portfolio is %. (Round to two decimal Firm A's common stock 0.17 0.12 Firm B's common stock 0.08 0.06 c. If Mary decides to invest 10% of her money in Firm A's common st Correlation coefficient 0.20 hen the expected rate of return in the portfolio is %. (Round to two decimal places. The standard deviation in the portfolio is %. (Round to two decimal Print Done If Mary decides to invest 90% of her money in Firm A's common stock and 10% in Firm B's common stock and the correlation coefficient between the two stocks is - 0.20, then the expected rate of return in the portfolio is %. (Round to two decimal places. The standard deviation of the portfolio is %. (Round to two decimal places.) d. What does your analysis tell you about portfolio risk when combining risky assets in a portfolio? (Select the best choice below.) Click to select your answer(s)