Create a two-way data table that determines the standard deviations for portfolios consisting of combinations of Stock A and Stock B by varying the correlation coefficient value between Stock A and Stock B through the full range of possible correlation coefficient values. Use increments of 0.25 for the possible correlation coefficient values.

Data for Two Stocks
	A	B
Expected return	15.00%	20.00%
Variance of return	0.36	0.81
Standard deviation of return	60.00%	90.00%
Correlation	0.25
Proportion of Stock A	0.60	0.4

Answer rating: 100% (QA)

A B Return 15 20 Variance 036 081 Standard Deviation 060 090 Proportion 060 040 Correlation 025 050 ... View the full answer