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You are considering investing in two common stocks. Stock A has an expected return of 15 percent and a standard deviation of 0.372. Stock B
You are considering investing in two common stocks. Stock A has an expected return of 15 percent and a standard deviation of 0.372. Stock B has an expected return of 19 percent and a standard deviation of .520. If you invest 39 percent of your funds in Stock A and 61 percent in stock B, and if the correlation between the two stocks is 0.31, what is the portfolio's expected return and standard deviation?
a. 16.56% and 0.462
b. 16.56% and 0.214
c. 17.44% and 0.150
d. 17.44% and 0.833
e. 17.44% and 0.388
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