6. Calculating a bata coefficient for a single stock A Aa Suppose that the standard deviation of returns for a single stock Ais DA -25%, and the standard deviation of the market return is OM -15%. If the correlation between stock A and the market is PAM -0.6, then the stock's beta is Is it reasonable to expect that the future expected return for a stock will equal its historical average return over a relatively short period of time? No Yes Next, consider a two-asset portfolio consisting of stock A with WA -75% and an expected returnr-5% and a standard deviation of QA = 4%, and stock B with rg -8% and 0g - 10%. Assuming that the correlation between stocks A and B is zero, the expected return to the portfolio is and the portfolio's standard deviation is Suppose that the correlation between stocks A and B is pas - 1, instead of zero. Which of the following statements correctly reflects the new data? The risk associated with the portfolio is lower. The risk associated with the portfolio is higher The expected return to the portfolio is higher The risk associated with the portfolio is the same as when the correlation is zero