chapter 11

Chapter t1 K Question 9 (of 10) value: 1.00 points Suppose the expected retums and standard deviations of Stocks A and B are E(RA)-, ER- 158, A" .368, and .628. a-1. Calculate the expected return of a portfolio that is composed of 43 percent Stook A and 57 percert returns on A and B is 58. (Do not round intermodiate Stock B when the correlation between the calculations and enter your answer as a percent rounded to 2 decimal Expected rotur a-2. Calculate the standard deviation of a portfolio that is composed of 43 percent Stock A and 57 percent Stock B when the correlation between the returms on A and B is .58. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, o.g. 32.16.) Calculate the standard deviation of a portfolio with the same portfolio weights as in part (a) when the correlation coefficient between the returns on Stocks A and B is -58. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g, 32.16.) b. References eBook & Resources Worksheet Check my work 4 MacBook