a. What is the standard deviation of a portfolio with 50% invested in stock A and the remainder in stock B?

b.  What is the expected return of a portfolio with 50% invested in stock A and the remainder in stock B?

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The following table shows realized rates of return for two stocks. A B Year Stock A 1 5% 2 -20% 3 -6% 4 5% 5 14% 6 16% 1 2 3 4 5 C Stock B 15% -14% -2% 28% 8% 5% The following table shows realized rates of return for two stocks. A B Year Stock A 1 5% 2 -20% 3 -6% 4 5% 5 14% 6 16% 1 2 3 4 5 C Stock B 15% -14% -2% 28% 8% 5%

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To answer these questions well need to use the data provided in the table which contains the realized rates of return for two stocks over six years a ... View the full answer