Question: Here are returns and standard deviations for four investments. Return Standard Deviation Treasury bills 5.0% 0% Stock P 11.5 16 Stock Q 14.5 28 Stock

Here are returns and standard deviations for four investments.

Return Standard Deviation
Treasury bills 5.0% 0%
Stock P 11.5 16
Stock Q 14.5 28
Stock R 24.0 27

Calculate the standard deviations of the following portfolios.

a.

50% in Treasury bills, 50% in stock P. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Standard deviation %

b.

50% each in Q and R, assuming the shares have: (Do not round intermediate calculations. Round your answers to 1 decimal place.)

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

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