You have an investment portfolio of $1,000. Consider the following and respond to the proceeding scenario.

• Stock A has an expected return of 5% and a standard deviation of 10%.
• Stock B has an expected return of 8% and a standard deviation of 20%.
• The covariance of the returns between Stocks A and B is 0.

If you short $500 of Stock A and invest in Stock B, what is your expected return and standard deviation?

What is the expected return on your investment? Enter your answer to the nearest tenth of a percent (e.g., 9.9%).

What is the standard deviation of the long-short portfolio return? Enter your answer to the nearest tenth of a percent (e.g., 9.9%).