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  3. 2. there are two stocks with the following paramet

2. There are two stocks with the following parameters: Pa = 10% 0 = 15%...

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2. There are two stocks with the following parameters: Pa = 10% 0 = 15% Ij = 18% Ob = 25% The correlation between these two stocks is 0.5. David has $10,000. He shorts stock a for $5,000 and invests $15,000 in stock b. What is the expected return and standard deviation of David's portfolio? If the return on stock a is 10% and the return on stock b is 5%, what is the return on David's portfolio

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