Question: Please help me out with these questions Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The stock holdings

Please help me out with these questions Andre is an amateur

Please help me out with these questions

Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The stock holdings in his portfolio are shown in the following table: Percentage of Expected Standard Stock Portfolio Return Deviation Artemis Inc. 20% 8.00% 27.00% Babish & Co. 30% 14.00% 31.00% Cornell Industries 35% 13.00% 34.00% Danforth Motors 15% 5.00% 36.00% What is the expected return on Andre's stock portfolio? 0 8.33% 0 11.10% 0 14.99% 0 16.65% Suppose each stock in Andre's portfolio has a correlation coefficient of 0.40 (p = 0.40) with each of the other stocks. The market's average standard deviation is approximately 20%, and the weighted average of the risk of the individual securities in the partially diversified four-stock portfolio is 32%. If 40 additional, randomly selected stocks with a correlation coefficient of 0.30 with the other stocks in the portfolio were added to the portfolio, what effect would this have on the portfolio's standard deviation (op)? 0 It would stay constant at 32%. 0 It would gradually settle at approximately 20%. 0 It would decrease gradually, settling at about 0%. 0 It would gradually settle at approximately 50%

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