Given E ( R 1 ) 0 13 E ( R 2 ) 0 17 E ( 1 ) 0 05 E ( 2 ) 0 06 Calculate the expected returns and expected standard deviations of a two stock portfolio having a correlation coefficient of 0 75 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 80 Expected return of a two stock portfolio Expected standard deviation of a two stock portfolio C) w 1 0 45 Expected return of a two stock portfolio Expected standard deviation of a two stock portfolio D) w 1 0 25 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

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Question: Given: E ( R 1 ) = 0.13 E ( R 2 ) = 0.17 E ( 1 ) = 0.05 E ( 2 )

Given:

E(R₁) = 0.13

E(R₂) = 0.17

E(₁) = 0.05

E(₂) = 0.06

Calculate the expected returns and expected standard deviations of a two-stock portfolio having a correlation coefficient of 0.75 under the conditions given below. Do not round intermediate calculations. Round your answers to four decimal places.

A). w₁ = 1.00

Expected return of a two-stock portfolio: ___________.

Expected standard deviation of a two-stock portfolio:___________.

B). w₁ = 0.80

Expected return of a two-stock portfolio:____________.

Expected standard deviation of a two-stock portfolio: ____________.

C). w₁ = 0.45

Expected return of a two-stock portfolio: ___________.

Expected standard deviation of a two-stock portfolio: ___________.

D). w₁ = 0.25

Expected return of a two-stock portfolio:______________.

Expected standard deviation of a two-stock portfolio: ______________.

E). w₁ = 0.05

Expected return of a two-stock portfolio: ____________.

Expected standard deviation of a two-stock portfolio:____________.

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