Question: please answer 10.14 A & B 10.14 The return on Stock A is uncorrelated with the return on stock B. Stock A has a 40
please answer 10.14 A & B

10.14 The return on Stock A is uncorrelated with the return on stock B. Stock A has a 40 per- cent chance of having a return of 15 percent and a 60 percent chance of a return of 10 percent. Stock B has a one-half chance of a 35 percent return and a one-half chance of a -5 percent return. a. Write a list of all of the possible outcomes and their probabilities. b. What is the expected return on a portfolio with 50 percent invested in stock A and 50 percent invested in stock B
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