Question: Question 33 (5 points) Suppose the expected returns and standard deviations of Stocks A and B are E(RA) 0.100, E(RB) = 0.160, = 0.370,

Question 33 (5 points) Suppose the expected returns and standard deviations of

Question 33 (5 points) Suppose the expected returns and standard deviations of Stocks A and B are E(RA) 0.100, E(RB) = 0.160, = 0.370, and B = 0.630. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) a-1. Calculate the expected return of a portfolio that is composed of 45 = percent A and 55 percent B when the correlation between the returns on A and B is 0.60. (1 Mark) a-2. Calculate the standard deviation of a portfolio that is composed of 45 percent A and 55 percent B when the correlation between the returns on A and B is 0.60. (2 Marks) 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 -0.60. (2 Marks)

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