Question: Please assist in finding the values for A-E. Kindly show all work (Computing the standard deviation for a portfolio of two risky investments) Mary Guilott


Please assist in finding the values for A-E. Kindly show all work


(Computing the standard deviation for a portfolio of two risky investments) Mary Guilott recently graduated from Nichols State University and is anxious to begin investing her meager savings as a way of applying what she has learned in business school. Specically, she is evaluating an investment in a portfolio comprised of two firms' common stock. She has collected the following information about the common stock of Firm A and Firm B: a . a. If Mary invests half her money in each of the two common stocks, what is the portfolio's expected rate of return and standard deviation in portfolio return? b. Answer part a where the correlation between the two common stock investments is equal to zero. c. Answer part a where the correlation between the two common stock investments is equal to + 1. d. Answer part a where the correlation between the two common stock investments is equal to - 1. e. Using your responses to questions ad, describe the relationship between the correlation and the risk and return of the portfolio. a. If Mary decides to invest 50% of her money in Firm A's common stock and 50% in Firm B's common stock and the correlation between the two stocks is 0.40, then the expected rate of return in the portfolio is D%. (Round to two decimal places.)
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