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You are considering investing in two common stocks. Stock A has an expected return of 16 percent and a standard deviation of 0.227. Stock B
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You are considering investing in two common stocks. Stock A has an expected return of 16 percent and a standard deviation of 0.227. Stock B has an expected return of 11 percent and a standard deviation of .099. If you invest 54 percent of your funds in Stock A and 46 percent in stock B, and if the correlation between the two stocks is 0.35, what is the portfolios expected return and standard deviation?
A. 13.3% and 0.197
B. 13.7% and 0.145
C. 15.2% and 0.202
D. 13.7% and 0.162
E. 13.3% and 0.183
You are considering investing in two common stocks. Stock A has an expected return of 16 percent and a standard deviation of 0.227. Stock B has an expected return of 11 percent and a standard deviation of .099. If you invest 54 percent of your funds in Stock A and 46 percent in stock B, and if the correlation between the two stocks is 0.35, what is the portfolios expected return and standard deviation?
A. | 13.3% and 0.197 | |
B. | 13.7% and 0.145 | |
C. | 15.2% and 0.202 | |
D. | 13.7% and 0.162 | |
E. | 13.3% and 0.183 |
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