Question: Expected Return Standard Deviation Firm A Common Stock 0.16 0.20 Firm B Common Stock 0.23 0.30 If the correlation coefficient between the stock returns of

Expected Return Standard Deviation Firm A Common Stock 0.16 0.20 Firm B Common Stock 0.23 0.30 If the correlation coefficient between the stock returns of Firm A and Firm B is 0.2, what is the expected return and standard deviation of a portfolio that invests equally between these two stocks?

A.13%, 7.63%

B.19.5%, 6.59%

C.19.5%, 19.62%

D.13%, 8.59%

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