Question: Here are returns and standard deviations for four investments. Return (%) Standard Deviation (%) Treasury bills 6.0 0 Stock P 10.0 14 Stock Q 14.5

Here are returns and standard deviations for four investments.

	Return (%)	Standard Deviation (%)
Treasury bills	6.0	0
Stock P	10.0	14
Stock Q	14.5	28
Stock R	21.0	26

Calculate the standard deviations of the following portfolios.

a. 50% in Treasury bills, 50% in stock P. (Enter your answer as a percent rounded to the nearest whole number.)

Standard deviation %

b. 50% each in Q and R, assuming the shares have: (Do not round intermediate calculations. Enter your answers as a percent rounded to 1 decimal place.)

	Standard Deviation
Perfect positive correlation	%
Perfect negative correlation	%
No correlation	%

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