Question: Problem 11-28 Portfolio Standard Deviation Suppose the expected returns and standard deviations of Stocks A and .085, E(Re) 145, AF 355, and BF .615. B

Problem 11-28 Portfolio Standard Deviation Suppose the expected returns and standard deviations of Stocks A and .085, E(Re) 145, AF 355, and BF .615. B are EIRA) a-1.Calculate the expected return of a portfolio that is composed of 30 percent A and 70 percent B when the correlation between the returns on A and B is 45. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g.. 3216).) Expected return 10.6 a- Calculate the standard deviation of a portfolio that is composed of 30 percent A and 2 70 percent B when the correlation between the returns on A and B is 45. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 3216).) Standaro deviation b. Calculate the standard deviation of a portfolio with the same portfolio weights as in part (a) when the correlation coefficient between the returns on A and B is -45. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (eg. 3216) Standard deviation

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