Question: Computing the standard deviation for a portfolio of two risky investments) Mary Gulott recently graduated from college and is evaluating an investment in two companies'

 Computing the standard deviation for a portfolio of two risky investments)

Computing the standard deviation for a portfolio of two risky investments) Mary Gulott recently graduated from college and is evaluating an investment in two companies' common stock. She has collected the following information about the common stock of Firm A \& Firm B a. If Mary decides. to invest 10% of her money in tirm ns s the common stock and 90% in Firm B's common stock, what is the portfolio return? b. If Mary decides to invest 90% of her money in Firm A's common stock and 10% in Firm B's common stock, what is the expected rate of return and the standard deviation of the c. Recompute your response to both questions a and b, where portfolio return? the correlation between the twoo firm's stock return is -0.50 . d. Summarize what your analysis tells you about portfolio risk when combining nisky assets in a portfolio

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