Given: E(R1) = 0.11 E(R2) = 0.19 E(1) = 0.02 E(2) = 0.03

Calculate the expected returns and expected standard deviations of a two-stock portfolio in which Stock 1 has a weight of 40 percent under the conditions given below. Do not round intermediate calculations. Round your answers for the expected returns of a two-stock portfolio to three decimal places and answers for expected standard deviations of a two-stock portfolio to four decimal places.

r1,2 = 1.00 Expected return of a two-stock portfolio:

r1,2 = 0.65 Expected return of a two-stock portfolio:

r1,2 = 0.10 Expected return of a two-stock portfolio:

r1,2 = 0.00 Expected return of a two-stock portfolio:

r1,2 = -0.10 Expected return of a two-stock portfolio:

r1,2 = -0.65 Expected return of a two-stock portfolio:

r1,2 = -1.00 Expected return of a two-stock portfolio: