Question: Expected Return Standard Deviation Firm A's common stock 0.17 0.16 Firm B's common stock 0.17 0.25 Correlation coefficient 0.50 stock of Firm A and Firm

Expected Return Standard Deviation Firm A's common stock 0.17 0.16 Firm

Expected Return	Standard Deviation
Firm A's common stock	0.17	0.16
Firm B's common stock	0.17	0.25
Correlation coefficient	0.50

Expected

Return

Standard Deviation

Firm A's common stock

0.17

0.16

Firm B's common stock

0.17

0.25

Correlation coefficient

0.50

stock of Firm A and Firm B: a. If Mary invests half her money in each of the two common stocks, what is the portfolio's expected rate of return and standard deviation in portfolio return? b. Answer part a where the correlation between the two common stock investments is equal to zero. c. Answer part a where the correlation between the two common stock investments is equal to +1. d. Answer part a where the correlation between the two common stock investments is equal to 1. e. Using your responses to questions a-d, describe the relationship between the correlation and the risk and return of the portfolio. \%. (Round to two decimal places.)

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