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You are in the process of calculating the expected rate of return of a portfolio which combines Stock A and Stock B. You are thinking

You are in the process of calculating the expected rate of return of a portfolio which combines Stock A and Stock B. You are thinking of investing 60% of your money in Stock A and the rest in Stock B.

Stock A has the following possible returns: 10%, 7%, 15%, -5% and 8%. Using these returns, you can calculate the expected return and standard deviation of stock A. The expected rate of return and standard deviation of Stock B are 4% and 2.5% respectively. The correlation between Stock A and Stock B is zero.

What is the expected return and standard deviation of the portfolio?

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