Consider the following six months of returns for two stocks and a portfolio of those two...

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Consider the following six months of returns for two stocks and a portfolio of those two stocks: (Click the icon to view the monthly returns.) Note: The portfolio is composed of 50% of Stock A and 50% of Stock B. a. What is the expected return and standard deviation of returns for each of the two stocks? b. What is the expected return and standard deviation of returns for the portfolio? c. Is the portfolio more or less risky than the two stocks? Why? a. What is the expected return and standard deviation of returns for each of the two stocks? The expected return of Stock A is%. (Round to one decimal place.) Monthly Returns Stock A Stock B Portfolio Jan 1% 1% 1% Feb 4% -2% 1% Print Mar -7% 9% 1% Apr 2% 0% 1% Done May -3% 5% 1% Jun 3% -1% 1% Consider the following six months of returns for two stocks and a portfolio of those two stocks: (Click the icon to view the monthly returns.) Note: The portfolio is composed of 50% of Stock A and 50% of Stock B. a. What is the expected return and standard deviation of returns for each of the two stocks? b. What is the expected return and standard deviation of returns for the portfolio? c. Is the portfolio more or less risky than the two stocks? Why? a. What is the expected return and standard deviation of returns for each of the two stocks? The expected return of Stock A is%. (Round to one decimal place.) Monthly Returns Stock A Stock B Portfolio Jan 1% 1% 1% Feb 4% -2% 1% Print Mar -7% 9% 1% Apr 2% 0% 1% Done May -3% 5% 1% Jun 3% -1% 1%

Answer rating: 100% (QA)

Stock A returns 01 005 015 008 002 009 Expected return of Stock A Meanreturns 01005015008002009... View the full answer