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Will upvote thank you! Stocks A and B have the following returns: (Click on the following icon in order to copy its contents into a
Will upvote thank you!
Stocks A and B have the following returns: (Click on the following icon in order to copy its contents into a spreadsheet.) a. What are the expected returns of the two stocks? b. What are the standard deviations of the returns of the two stocks? c. If their correlation is 0.47 , what is the expected return and standard deviation of a portfolio of 64% stock A and 36% stock B? a. What are the expected returns of the two stocks? The expected return for stock A is . (Round to three decimal places.) The expected return for stock B is (Round to three decimal places.) b. What are the standard deviations of the returns of the two stocks? The standard deviation of the return for stock A is . (Round to four decimal places.) The standard deviation of the return for stock B is . . (Round to four decimal places.) c. If their correlation is 0.47 , what is the expected return and standard deviation of a portfolio of 64% stock A and 36% stock B? The expected return for the portfolio is . (Round to four decimal places.) The standard deviation of the return for the portfolio is . (Round to four decimal places.)Step by Step Solution
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