# Question: You are given the following data on several stocks a Calculate

You are given the following data on several stocks:

a. Calculate the expected return and standard deviation for each stock.

b. Calculate the expected return and standard deviation for a portfolio invested equally in Gere Mining and Reubenfeld Films. How does the standard deviation of this portfolio compare to a simple 50-50 weighted average of the standard deviations of the two stocks?

c. Calculate the expected return and standard deviation for a portfolio invested equally in Gere Mining and DeLorean Automative. How does the standard deviation of this portfolio compare to a simple 50-50 weighted average of the standard deviations of the two stocks?

d. Explain why your answers regarding the portfolio standard deviations are so different in parts b and c.

a. Calculate the expected return and standard deviation for each stock.

b. Calculate the expected return and standard deviation for a portfolio invested equally in Gere Mining and Reubenfeld Films. How does the standard deviation of this portfolio compare to a simple 50-50 weighted average of the standard deviations of the two stocks?

c. Calculate the expected return and standard deviation for a portfolio invested equally in Gere Mining and DeLorean Automative. How does the standard deviation of this portfolio compare to a simple 50-50 weighted average of the standard deviations of the two stocks?

d. Explain why your answers regarding the portfolio standard deviations are so different in parts b and c.

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