Question: Please answer A, B, C. Stocks A and B have the following returns: Stock A Stock B 1 0.08 0.06 2 0.04 0.03 3 0.12
Please answer A, B, C.
Stocks A and B have the following returns:
| Stock A | Stock B | | |||||||||||
| 1 | 0.08 | 0.06 | |||||||||||
| 2 | 0.04 | 0.03 | |||||||||||
| 3 | 0.12 | 0.04 | |||||||||||
| 4 | 0.03 | 0.02 | |||||||||||
| 5 | 0.08 | 0.02 | |||||||||||
a. What are the expected returns of the two stocks?
b. What are the standard deviations of the returns of the two stocks?
c. If their correlation is 0.45, what is the expected return and standard deviation of a portfolio of 55% stock A and 45% stock B?
Score: 0 of 1pt P 12-7 (similar to Stocks A and B have the following returns 0.08 0.04 0 12 -0 03 0.06 0.03 0.04 0 02 -0 02 0 08 a. What are the expected reburns of the two stocks? c. W their correlation is 0 45, what is the expected return and standand a. What are the expected retums of the two stocks? The expected returntor stock A is (Round to tree decimal places ) Type hero tose-ch
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