Question: A portfolio has two elements: stock A and stock B. The weight on stock A is equal to 0.1. The correlation between the return of

A portfolio has two elements: stock A and stock B. The weight on stock A is equal to 0.1. The correlation between the return of stock A and B is 0.4. The table below shows (possibly relevant) additional information. The variance for each stock was computed by using rates of returns and not percentages. What is the expected return of the portfolio? What is its standard deviation?

Stock	Expected return	Variance
A	17%	0.0169
B	13%	0.0361

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