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You are given the following information concerning two stocks: A B Expected return 10% 15% Standard deviation of the expected return 4.0% 5.0% Correlation coefficient

You are given the following information concerning two stocks:

	A		B
Expected return	10%		15%
Standard deviation of the expected return	4.0%		5.0%
Correlation coefficient of the returns		-0.2

A. What is the expected return on a portfolio consisting of 40 percent in stock A and 60 percent in stock B? Round your answer to two decimal places. %

B. What is the standard deviation of this portfolio? Round your answer to three decimal places. %

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