1. What is the expected return of a portfolio with 55% invested in Stock A and 45% in Stock B?

   Stock A: E(r)=17% and Standard deviation=20%

   Stock B: E(r)=11% and Standard deviation=12%

   Correlation between Stock A and B = 0.8

   1. 10.62%

   2. 11.40%

   3. 12.75%

   4. 13.85%

   5. 14.30%

2. Question 12

   What is the variance of a portfolio with 55% invested in Stock A and 45% in Stock B.

   Stock A: E(r)=17% and Standard deviation=20%

   Stock B: E(r)=11% and Standard deviation=12%

   Correlation between Stock A and B = 0.8

   1. 0.0198

   2. 0.0245

   3. 0.0293

   4. 0.0269

   5. 0.0210