Problem $6-05$

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Problem $6-05$

Given:

$E(R_1)=0\mathrm{.}13$

$E(R_2)=0\mathrm{.}21$

$E({}_1)=0\mathrm{.}02$

$E({}_2)=0\mathrm{.}04$

decimal places and answers for expected standard deviations of a two$-$stock portfolio to four decimal places.

a$.r_{1,2}=1\mathrm{.}00$

Expected return of a two$-$stock portfolio:

Expected standard deviation of a two$-$stock portfolio:

b$.r_{1,2}=0\mathrm{.}65$

Expected return of a two$-$stock portfolio:

Expected standard deviation of a two$-$stock portfolio:

c$.r_{1,2}=0\mathrm{.}20$

Expected return of a two$-$stock portfolio:

Expected standard deviation of a two$-$stock portfolio:

d$.r_{1,2}=0\mathrm{.}00$

Expected return of a two$-$stock portfolio:

Expected standard deviation of a two$-$stock portfolio:

e$.r_{1,2}=-0\mathrm{.}20$

Expected return of a two$-$stock portfolio:

Expected standard deviation of a two$-$stock portfolio:

f$.r_{1,2}=-0\mathrm{.}65$

Expected return of a two$-$stock portfolio:

Expected standard deviation of a two$-$stock portfolio:

g$.r_{1,2}=-1\mathrm{.}00$

Expected return of a two$-$stock portfolio:

Expected standard deviation of a two$-$stock portfolio: