Question: Consider the following common stocks with the shown expected return and standard deviation: Expected Return Std. Deviation Stock X 14% 7% Stock Y 12% 8%

Consider the following common stocks with the shown expected return and standard deviation:

Expected Return Std. Deviation
Stock X 14% 7%
Stock Y 12% 8%
Stock Z 8% 2%

If we have a portfolio with 50% stock X, 30% stock Y and 20% stock Z, what is the expected return? what is the expected return?

None of other choices

12.2%

6.3%

10.6%

11.33%

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