Given:

	E(R 1) = 0.13
	E(R 2) = 0.17
	E( 1) = 0.04
	E( 2) = 0.06

Calculate the expected returns and expected standard deviations of a two-stock portfolio having a correlation coefficient of 0.60 under the conditions given below. Do not round intermediate calculations. Round your answers to four decimal places.

a. w ₁ = 1.00

Expected return of a two-stock portfolio:

Expected standard deviation of a two-stock portfolio:

b. w ₁ = 0.85

Expected return of a two-stock portfolio:

Expected standard deviation of a two-stock portfolio:

c. w ₁ = 0.55

Expected return of a two-stock portfolio:

Expected standard deviation of a two-stock portfolio:

d. w ₁ = 0.30

Expected return of a two-stock portfolio:

Expected standard deviation of a two-stock portfolio:

e. w ₁ = 0.05

Expected return of a two-stock portfolio:

Expected standard deviation of a two-stock portfolio: