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Consider the following two stocks Stock "B" Probabilities (P) 26% Recession Normal Boom Stock "A" 1% 39 13% P2 20% 12% 5% 24% 54% The portfolio weights for stocks "A" and "B" are 0.15 and 0.85, respectively. What are the expected returns of stock "A" and "B"? Enter your answers as a percentage. Do not put the percent sign in your answers. Round your answers to 2 DECIMAL PLACES. (ra) 7.36 Correct response: 7.36+0.01 12.48 Correct response: 12.48+0.01 Click "Verify" to proceed to the next part of the question This questions has 4 parts (.e., you will be clicking "Verify* 4 times) What are the standard deviations of stocks "A" and "B"? Enter your answers as a percentage. Do not put the percent sign in your answers. Round your answers to 2 DECIMAL PLACES. SD 7.36 Correct response: 6.260.01 SD- 12.48 Correct response: 12.740.01 Click "verify" to proceed to the next part of the question What is the expected return of the portfolio? Enter your answer as a percentage. Do not put the percent sign in your answer. Round your answer to 2 DECIMAL PLACES. (rp) - 11.71 Correct response: 11.7118.01 Click "Verify" to proceed to the next part of the question Using the correct answer from the previous question, what is the standard deviation of the portiolio? Enter your answer as a percentage. Do not put the percentage sign in your answer. Round your answer to 2 DECIMAL PLACES SDp Number Click "Verily to proceed. An investor is considering the purchase of Gryphon stock, which has returns given in the table below. Scenario Recession Normal Economy Boom Probability 0.28 0.5 5.22 Rate of Return 2% 10% 16% Calculate the expected return and standard deviation of Gryphon. Round your answers to 2 decimal places. Enter your answers below. Ein) = 7.96 Correct response: 7.96% Std. Dev. = 6.64 Correct response: 6.64+0.01% This question has 3 parts (l.e, you will be clicking "Verify" 3 times) The investor decides to diversity by investing $4,000 in Gryphon stock and $2,000 in Royal stock, which has an expected return of 4% and a standard deviation of 7.1%. The correlation coefficient for the two stocks' returns is 0.5. Calculate the expected retum and standard deviation of the portfolio. Round your answers to 2 decimal places. Enter your answers below. Frp) = 6.65 Correct response: 6.64+0.01% Sta. Dev. - 5.98 Correct response: 5.97+0.02% Suppose the investor decides to invest an additional $5,000 in a treasury bill yielding 2%. What will be the expected retum and standard deviation of this portfolio Round your answers to 2 decimal places. Elrp) = Number % Std. Dev. = Number

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