Stocks A and B have the following? returns: Stock A     Stock B 1 0.11     0.06 2 0.06     0.04 3 0.15     0.04 4 0.03???    0.01 5    0.07                    ...

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Finance

Stocks A and B have the following? returns:

Stock A

    Stock B

1

0.11

    0.06

2

0.06

    0.04

3

0.15

    0.04

4

0.03???

   0.01

5

  0.07            

        -0.03

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

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

c. If their correlation is 0.48?, what is theexpected return and standard deviation of a portfolio of 56?% stockA and 44?% stock? B?

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Stocks A and B have the following? returns:Stock A    Stock B10.11    0.0620.06    0.0430.15    0.0440.03???   0.015  0.07                    -0.03a. What are the expected returns of the two?stocks?b. What are the standard deviations of thereturns of the two? stocks?c. If their correlation is 0.48?, what is theexpected return and standard deviation of a portfolio of 56?% stockA and 44?% stock? B?

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