Question: Beyonce, Inc. Jay Z, Ltd. Expected return 17.8% 10.6% Standard deviation 18% 7% You have the following information about two stocks: Assume you invest 60%

Beyonce, Inc.

Jay Z, Ltd.

Expected return

17.8%

10.6%

Standard deviation

18%

You have the following information about two stocks:

Assume you invest 60% of your funds in Beyonce and 40% in Jay Z, and the correlation of returns between the two is 0.65. Calculate the expected return and the standard deviation of this portfolio.

Calculate what happens to the expected return and the standard deviation of the portfolio if the correlation of returns between the stocks is a) 1.0, b) 0.0, and c) -1.0.4. Suppose a portfolio consists of the following stocks:

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