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  3. a. what are the expected returns of the two stocks

a. What are the expected returns of the two stocks? The expected return for stock...

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Question

Accounting

a. What are the expected returns of the two stocks?

The expected return for stock A is

(Round to three decimal places.)

Part 2

The expected return for stock B is

(Round to three decimal places.)

Part 3

b. What are the standard deviations of the returns of the two stocks?

The standard deviation of the return for stock A is

(Round to four decimal places.)

Part 4

The standard deviation of the return for stock B is

image

(Round to four decimal places.)

Part 5

c. If their correlation is

0.44,

what is the expected return and standard deviation of a portfolio of

54%

stock A and

46%

stock B?

The expected return for the portfolio is

(Round to four decimal places.)

Part 6

The standard deviation of the return for the portfolio is

(Round to four decimal places.)

a. What are the expected returns of the two stocks? b. What are the standard deviations of the retums of the two stocks? c. If their correlation is 0.44, what is the expected return and standard deviation of a portfolio of 56% stock A and 44% stock B ? a. What are the expected returns of the two stocks? The expected return for stock A is (Round to three decimal places.)

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