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CONSIDER THE FOLLOWING INFORMATION FOR THE NEXT THREE QUESTIONS: You are given the following information...

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Accounting

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CONSIDER THE FOLLOWING INFORMATION FOR THE NEXT THREE QUESTIONS: You are given the following information about stocks A and B. E(RA) E(RB) 16% 10% 2% A,B 0.8 18. You have $20,000 to invest in stocks A and B. If you decide to invest 20% of your amount in stock A, what is the expected return and standard deviation on the portfolio consisting of stocks A and B respectively? a. 14.80 percent and 2.73 per cent b 11.20 percent and 2.11 per cent c. 11.20 percent and 1.18 per cent d. 14.80 percent and 2. 09 per cent e. 12.75 percent and 2.64 per cent 19. What will the expected return and standard deviation respectively of your portfolio consisting of the stocks A and B, if you decide to sell short 25% of the stock B? a 17.50 percent and 3.36 per cent b 8.50 percent and 2.00 per cent c. 11.20 percent and 1.18 per cent d. 14.80 percent and 2. 09 per cent e. 12.75 percent and 2.264 per cent

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