Problem 6-05 Given: E(R) = 0.10 E(R) = 0.17 E(01) = 0.01 E(0) = 0.05 Calculate the expected returns and expected standard deviations of a two-stock portfolio in which Stock 1 has a weight of 40 percent under the conditions given below. Do not round intermediate calculations. Round your answers for the expected returns of a two-stock portfolio to three decimal places and answers for expected standard deviations of a two-stock portfolio to four decimal places. a. 1,2 = 1.00 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: b. r1,2 = 0.75 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: c. 1,2 = 0.35 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: d. 1,2 = 0.00 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: e. 1,2 = -0.35 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: f. 1,2 = -0.75 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: g. 1,2 -1.00 Expected return of a two-stock portfolio: Expected standard deviation of a two-stock portfolio: X X X X X X X X X X X X X X A

E(R3)=0.10E(R3)=0.17E(1)=0.01E(2)=0.05 Withte the expectad returns and expected standard deviations of a twa-stock portfolio in which stock 1 has a weight of 40 percent under the conditions given belaw. Do not round Imediate calculotions. Round your apswers for the expected returns of a twe-stock portfolio to three decimal places and anseners for expected standard deviations af a two-stock folio to four decimal pleces. a. n1x=1.00 Expected retum of a two-stock pertfolio: x Expected standard deviation of a two-stock pertfolio: x b. n,t=0.75 Exptcted retuen of a two-stock portiolio: x Fupected standard deviatien of a two-stock portfoliet c., a. 2=0.35 Expected return of a two-stock pertolis: x Expected standard deviation of a two-stsek portfolio: x d. n=0.00 Expected returt of o two stock portolio: x Expected standard deviation of a two-stock portfoilo: e. nz,i0.35 Expected return of a two-stock portiolio: x Expected standard devintion of a two stseck poctfolio: x t. ha=0.75 Expected return of o two-stock pertollo: x Expected itandard deviation of a two-stock portfoliof x ginu =1,00 Expected ieturn of in two-itock portolio: x Expected standard deviation of a twoistock portfolo x