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  3. correlation between a and b is -0.4. the correlati

correlation between A and B is -0.4. The Correlation between B and risk-free assets is...

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correlation between A and B is -0.4. The Correlation between B and risk-free assets is 0. Answer part a) to e xpected Return Standard Deviation 18% tock A ock B isk-free assets farket portfolio 10% .3 12% .15 ested in a) Calculate the expected return and standard deviation for a portfolio with 30% inv Stock A and 70% invested in Stock B. (6) b) If you want to use A and B to form a portfolio with a portfolio with a p of 1.4,how much should you invested in A and B each? (6)

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