eBook Problem 6-06 Given: E(R 1) = 0.13 E(R 2) = 0.18 E( 1) = 0.03 E( 2) = 0.05 Calculate the expected returns and expected standard deviations of a two-stock portfolio having a correlation coefficient of 0.80 under the conditions given below. Do not round intermediate calculations. Round your answers to four decimal places. w 1 = 1.00 Expected return of a two-stock portfolio: 0.13 Expected standard deviation of a two-stock portfolio: 0.0393 w 1 = 0.70 Expected return of a two-stock portfolio: 0.142 Expected standard deviation of a two-stock portfolio: 0.0418 w 1 = 0.40 Expected return of a two-stock portfolio: 0.152 Expected standard deviation of a two-stock portfolio: 0.0444 w 1 = 0.30 Expected return of a two-stock portfolio: 0.157 Expected standard deviation of a two-stock portfolio: 0.0458 w 1 = 0.10 Expected return of a two-stock portfolio: 0.163 Expected standard deviation of a two-stock portfolio: 0.0472 Choose the correct riskreturn graph for weights from parts (a) through (e) when ri,j = -0.80; 0.00; 0.80. The correct graph is -Select-

he correct graph is -Select-graph Agraph Bgraph Cgraph DItem 11 .

A.
B.
C.
D.